We were able to close the quickest, only ones willing to put 10% deposit with money going hard after DD.

If the seller agreed to do any repairs to the property you will want to view the property prior to closing to make certain the repairs were done (and done properly).Also make certain the current tenant security deposits are transferred to you.

Get 1st, last and deposit or a deposit equal to 1.5X rent to offset when things go south.Minimize how long a place is vacant by getting a new tenant ASAP when one moves out.Motion lights front and back help deter people from being where they shouldn't be.HVAC cages are a good investment.File an eviction when they are late to train them to pay the rent if they want to stay.

As long as you find someone you can develop a relationship with and TRUST, though, it just gets easier from there, and before you know it, you have a whole portfolio injecting deposits into your account every month!

There will also be common electric areas (hallways, outside lights) that will be in your name that may need deposits to put into your name. 

This is where it would be great to be able to show that you gave back the keys on x date, did a walkthrough, got back your deposit, etc.

Because, even though it's free to clean, people don't bother when they know they aren't getting their security deposit back. 

I am wondering if I should treat them as I would any other tenant such as asking for Security Deposits, Signing a formal lease agreement w/ terms, verifying their incomes (to make sure I can get paid and friendship doesn't go sour) and holding up the lease agreement?

You may also want to put up non refundable deposit from the start and convey that you are a closer and very easy to work with.

There are other bills dealing with deposits and rent increases and some groups have placed our bill in with those bills.