Well, I'll quote FannieMae.com directly here:"Borrowed funds secured by an asset are an acceptable source of funds for the down payment, closing costs, and reserves, since borrowed funds secured by an asset represent a return of equity.Assets that may be used to secure funds include automobiles, artwork, collectibles, real estate, or financial assets, such as savings accounts, certificates of deposit, stocks, bonds, and 401(k) accounts."

Offer to help them find a new place and pay deposit on it, for example?

I remember hearing on a Bp podcast about putting down $100,000.00 as a deposit would sweeten the offer, and that as long a I have my contingencies in place I should be fine.

Im worried once they look at one electrical thing it could snowball and end up cost $20,000.Could I still back out of the deal and loose my deposit $5,000 and walk away from it all?

I want to accept only money orders, checks, direct deposit and or electronic payment through Zelle.

In my opinion the best scenario for you would be as follows:1)  5 yr lease with a 3% rent increase every year on the year anniversary.2) Require proof of ability to fund the build out project. ( Letter from Bank, lender )Require a one month rent or more security deposit at lease signing. 3 ) You should have building insurance ( build out/ construction insurance ) started at lease signing.

If you used a realtor, the deposit should be held by their realtor and wouldn't have been released to the seller.

The couple had been living with their Aunt and Uncle until they had enough money saved up for a security deposit.

You'd have no security deposit to deduct against.

I have a few investors reaching out to me to do business with, but I don’t personally know them and I’m naturally cautious because I want to make sure any deals I do are clean and that I’ll receive my initial deposit and profit in return.