What type of security does typical hard money loaners require?

Sending out offers to owners is a proven method of having interested sellers contact YOU. 

I am trying to secure funds for my first flip. 

Considering possible interior and exterior damage from the large dog of the remaining tenants, and other damage that may not become evident until prepping house for next tenant, how can we handle the refund of security deposit to MIL couple, since, per the text of the lease: “All Lessees are jointly, severally and individually bound by, and liable under, the terms and conditions of this Lease.”?

Adding to the shock was that he was using the shower and the projectile striking him wasn't the shower head, but the faucet to the tub"As the pictures will show, the faucet was not secured to the shower wall - which there was no way for us to know until the incident occurred - and the pipe connecting to it has a lot of dirt and build up. 

Relative would give you personal non-secured loan, you payoff the balance of the 401k loan, rollover funds into self-directed IRA and then IRA would buy a rental property.

@Brian Kraft - I think the cap rate you purchase at is significantly just your method. 

Your family member could also provide the financing on it and make money every month with a positive cash flow spread between the debt and the rent collected or be like a guarantee person that is the main backer for the long term loan your Bank or other lender that  owns that property with a long term loan with that property  on a security  loan until that loan is paid off.Not saying the fix up budget makes this decision fairly difficult but i would say to not have a house that needs over $5,000 on the "make ready" expense to make a 20% gross return giving a cost price and sales price you gave on your example.What you could do to find a deal is pretty limitless. 

So are you going to hire 24 hour security?

Look Unless it’s in your lease I would tell them that if they want it colder then go buy themselves a window unit and if they really fight you about it go buy them one and take the cost directly out of their security deposit .