I have a multifamily rehab deal under agreement, going hard on a deposit tomorrow!

because conventional loans only allow you to have 10 loans so why fill the slots with anything less than 4 units!

@Lyndsey Keller,When you sign up with the bureaus, they will pull your personal credit, and they are looking for tax liens and bankruptcy and if your credit is not good, they will still sign you up, but you will need to put a deposit on file and as a landlord, The bureaus will not allow you to charge a tenant more than what you are paying the bureau for the credit report.Joe Gore

My question is this : How should the deposit money be distributed?

Again, since I have PM's, I just get a report each month and I match it up to a direct deposit amount and I fill in my income/expense sheet and code accordingly. 

These idiots... sorry, future real estate millionaires, were running to the back of the room to put their deposit down and secure themselves one of these fine properties.I remember sitting there thinking, "If I bought one of those, I'd put my 'For Rent' sign out front, and so would every single other owner."

If we're talking a few hundred dollars after subtracting out the deposit, I won't worry about it.

Do I have the investor cut me a check, which I deposit, and then use to purchase the house?

yes, you should provide an earnest money deposit to bind the contract.

C provides non refundable deposit.