Regardless of whether you own one property or 1000, whether you house hack or are a out of state investor always operate your investment as a business.

I work for a local FD and when we do inspections we ensure each pull station is operable,able to be reset and the alarm bell activates.

Have you run the numbers to see what YOUR expenses in operating the property will be? 

Should my operating account be in the same bank as the security deposit?

At $400K for $2K/mo revenue I'd be very surprised if it had a positive cashlow within the first 5 years, if you take into account all the operating costs.

This is not a passive venture if you're seeking to be an Owner/Operator. 

What does your operating agreement say? 

I budget 23% of revenue for maintenance and operations. 

If you acquire an underperforming one, increase revenue and fix the fundamental issues, I’m sure that you can then show a bank your operating statement and get a small business loan but I think with a small business loan, the money provided is strictly for use within that business.

However, when it comes down to the operating agreement and ownership interest in the entity (which was solely created for the deal), how much is safe to allocate to each member category without giving away too much control to limited partners?