Edward,First things first, you should get in to see the property, see what kind of condition it's in, or if it's even standing.

What buyer is going to want to inherent an issue without some kind on concession.

The security deposit can be used for the last months rent or be applied to the rent if you are willing to do that but it sounds like you are going to have all kinds of trouble on the back end with these people.

@Mike Cumbie Based on a conversation we have had the interest is there I just need to give some additional motivation for selling, which may be just a matter of using the right kind of financing, which is the step I am currently at.

Bremner..I think we have some common characteristics :) When you found your first property- I'm sure you used the 70% Rule to analyze the deal- right? 

I feel there will be a distribution of some kind but since its from Houston it would be hard to say.

The exemption you choose will determine: a) the financial qualifications of your investors, b) whether you can advertise or if you can only offer the opportunity to people with whom you have established a substantive pre-existing relationship, and c) what kind of risk disclosure document, if any, you need to provide.

Unfortunately, none of my friends or family have that kind of capital.

A lot of different agents work well with different kinds of investors.

So, I've done a bunch of different kind of fixer-uppers that required NO carpet and paint.