The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

They do have funds for a Deposit to Hold though. 

On a similar note, one thing to pay attention to with PMs is the security deposits.

Security Deposits:The property management charges tenants a "move-in" fee rather than a security deposit.

All our properties currently yield over 6.5% gross return, with a borrowing rate at 6.5% and 20% deposits.

Be interested in what your thoughts are to include this in a lease (needs to be maintained to some defined degree of cleanliness rather than waiting until move-out and deduct cleaning charges from their deposit).

We play games called, "lets show the property to a perspective tenant" and "lets go to closing together" and "lets deposit money in your bank account" and "lets review your college fund investments".

Also greatly important are quality contractors at great prices who won't disappear with your 50% deposit.

It sounds like there are five strategies, and the first one is essentially inserting yourself into a deal by providing the funds for an earnest money deposit for someone like a wholesaler.

Deposits are not classified as income.