The tenants can have a security system in their unit, if they want, but the common areas are used by too many people to have a security system. 

I honestly thought that was a great way to put it in perspective.Separate PointI did disagree when they said pulling out the equity makes the investment more secure.

It has links to your state laws so you can (and should) read them for yourself but it also includes summaries of important laws like how to handle security deposits or evict tenants for failure to pay rent.

What bank should I put the security deposit it away in, big name or small community bank?

I am saving up enough to cover 12 months of the mortgage and bills and putting them in an account separate from my finances to cover any periods that the other side is vacant or not payingBut I also can secure my future with this property, if done right.Please help!

So in my operating agreement, I guess I wasn't distinguishing between ownership & equity vs voting rights and gave them the same weight. 

Hi BP Family,So I just closed on my first multi unit deal with two tenants in place, one of the tenants has been there for a long time and the previous owner never took security and last from them. 

You also have their security deposit, perhaps you can negotiate that you keep it to help cover closing costs?

First, you should verify his income supports the rent without her assistance.Second, you should write up a simple "Remove Tenant Addendum" that removes her from the lease, gives him complete control of the lease and responsibility for the rent and condition of the property, and that notifies her she is giving up any rights to the property or the security deposit.

The numbers are fair in my opinion but I would structure it as a secured loan and a joint venture agreement(two separate agreements).