With a detailed SOW I could have outlaid all of the areas that needed to be completed as well as details like pressure treated posts, 1 inch clearance from the ground, two foot post depth, etc.

Hi John,When you pay your "First & Last" month's rent when you initially move into a rental, that last month's rent is treated as a security deposit.

“EVERYBODY, I repeat, EVERYBODY, gets treated the same.”

I try to treat the tenants fairly in all matters including their deposit.  

If I were you, I would treat my parents the same way and pay them the same kind of interest if I every utilized money from them.

This is a business and should be treated as such. 

That would usually mean multiple exchanges since each property can be treated by itself with a 1031 exchange. 

Even though they don't own the property, treat them as if they did.

You should also take equity paydown into account here if you're treating this as a long term investment. 

I bought my first rental in Euclid, OH and it's treated me well.