You can adjust the deposit as you see fit. 

Security deposit and the final month's rent is paid up front for each unit.

Unless you specifically know if a program in your area, assume that your deposit (and small claims court) is your only protection against damages. 

We are going to open a joint bank account and deposit the rent in there.

That ain't fun if you've used your money for deposit, waited 3-6 weeks for court date only to have Johnny come lately snag your deal.In my state, CA, the underlying document you would want to review to determine level of powers in referred to as Letters Testamentary.

He paid $675/month with a $500 security deposit.

I am looking for individual that will take a share of the business that is to be matched with the percentage of your investment into the property.

Looks like there never was a deposit, confirmed with the tenant.

If you get offered something better, take it back to the lender you like and see if they can match. 

Make sure you have plenty of pictures and documentation.Also check your local and state laws for how long you have to return the deposit or provide an accounting of any portion not returned.