So say your rent is 1000 and you would normally charge 1250 for a security deposit.

Here’s the bottom line:No financial risk to partner = no motivation = can pack up his tool bag and leave.No contract can secure yourself and your investment when it comes to this type of partnership - there are too many what ifs and what to do on that if.Best case: Hire him as contractor, pay his invoice, move to the next deal.

With that being said, I do charge an application fee and here's a list of some of the reasons why:1)  I incur a cost to run a credit check so the application fee just offsets this cost (I don't make money off the application fee, I just charge according to what it actually costs me so I'm not out any money).2)  It helps weed out the tire kickers who may turn in an application but aren't serious about renting the property or those that might turn in an application hoping you won't find out something that would disqualify them (I give all applicants my criteria stapled to the application so they know exactly what I'm looking for, and not looking for).3)  It's another screening tool (if the applicant can't afford the application fee, how are they going to afford the rent + security deposit?)

I came up with $2.1M using a very similar method.

They had securities carrying guns question even if you live there.

A buddy was telling me that he heard of a method of getting financing via buying an established company and leveraging the company's equity to obtain financing.Is this real/legit or should I tell him to beware?

Before giving a tenant keys, at least the first month and the security deposit should have been RECEIVED by the leasing agent/owner in the form of cash or money order to start the tenancy.

Looking for a recommendation of a contractor who can secure the property, change the locks and do winterization.

If you buy a 2nd position you are buying subject to the senior lien; If that lien is in default then the total payoff ( if in default or foreclosure, interest, late fee's, foreclosure fee's, etc. ) is still owed and secured on the home. 

I have secured employment opportunities with three different companies and am awaiting final approval from each of them so I can basically choose the best fit.