Assuming the leases clearly state a security deposit amount, the seller knows that the tenant will be wanting a refund when the lease ends (after closing) so should be an easy reminder that you need those funds credited to you at closing from them to refund to the tenant when needed.If the seller spent the tenants deposit, at least the credit to you at closing comes out of the sales proceeds (seller just nets that much less at closing) and assuming they have sufficient equity should not be a big deal.  

I was looking for some advice (viable target areas in Cleveland or Ohio in general, financing options and credible PM/realtor contacts) from the experts here though especially if you are in a similar boat as mine (reside in Canada/Ontario area and invest in US). 

@Carl RowlesI recommend a HELOC or Heloan on your primary residence or the rental if you have enough equity in either.

My ownership is 1/18 (6.5%) and equity is about $900k.

While the 4% mortgage is great, your 1M in dead equity isn't giving you a great return.

Once the loan matures, the interest rate could go even higher and you can actually start losing equity in the deal.

Thus, they take extreme risks and look for corresponding discounts.Additionally, after the first position lender accounts for default interest, penalties, legal fees, foreclosure fees, accounting fees, and everything else, the equity in your combined <65% ARV loan can easily erode to zero.

That's how I discovered PB a few years ago.We've owned our own home since I believe June of 2021 in central NJ (not sure how much equity we have in it).

I've never had something that low, but I'm also looking at roughly $30k in equity on this property. 

Planning on renting the current residence home to group home in Minnesota as we move into a new home.