Be sure you get credit for the security deposit at/before you close.You're right on the lease.

Make sure the cash flow is secure with high quality tenants.Eliminate all personal debts.Secure your personal income streams (work / education / skill development) for yourself and your family.Leave yourself a cash emergency fund that can cover a year's worth of all personal and real estate expenses.These first few properties should be completely paid off.

Most administrators will dump RE converting to securities for better asset management

They want the anchor to give them the security to affect an area.

I've incurred some expenses with inspections, rental business license, some repair work done, and installed a security system. 

I've been reading the mass.gov literature and have pretty much decided not to mess with security deposits if I can help it.

Too many other states where I can get great returns and have them out in 3 to 4 weeks time for the whole process.Are you allowed there to require large security deposits or advanced fees to cover such a scenario??

I wonder if this corresponds to what you mention or if it's some other reason such as New Englanders being older, fiscally more conservative, etc.

You need to be financially secure before buying all those nice liability things.

I allowed the tenant to stay, but doubled his security deposit because he now posed more of a risk and I wanted enough money in the coffers to cover the cost of eviction if necessary.