thanks for the reply @ryancoleman I am planning to have roughly around 5k to either deposit and or put away for future expenses my budget for the house with renovation expenses will be between 100k-130k depending on how much I'm approved for with this budget  I would still be able to manage the mortgage by myself in case of any vacancy rate. unfortunately from what I was told with the 203k loan I would not be able to receive any down payment assistance which is why I am juggling between a standard FHA and receive assistance or 203k and receive renovation $$

Also, I opened a business bank account to hold security deposits & to separate personal & business funds. 

Thank you in advance.Sale Price : $ 284,000.00Down Payment : $ 64,000.00Mortgage Amount $220,000.00Mortgage Terms 4.9%, 15 Years, Balloon payment after 5 yearsMonthly Payment : $ 1,728.00 Automatic direct deposit.

Then I would match the market increase each year.

Take my deposit now, I'll pay a higher rate rent and sign a year lease so long as you stop showing the place. 

Look at tax rolls for ownership addresses that don't match the physical address you're looking at.  

The land purchase is matched with the land sale, so you declare the income and then recognize the costs all in the same year in which the property sold.

Well long story short he asked for $1000 deposit leaving a balance of $2200 we gave him a check for the deposit, I asked him for an invoice and he hand wrote " $3000 plans $200 site $1000 deposit" on a plain white paper, I wrote in the check number with date.

Luckily I got him to pay the last  So I did my final inspection on the unit and deducted the damages and returned the remaining deposit.  

Oftentimes my sellers are looking for something comparable to what they would have gotten in the form of refundable deposits if it were a rental, but instead in the form of nonrefundable option consideration.