You always hire contractors where the size of the company matches the size of the job. 

@Brendan Winans was relentless and matched my persistence, and I could not have connected with a better local agent that understood investors looking for the deal. 1 tenant got evicted during escrow, so in the 2 weeks following closing I was able to get a signed lease and received security deposit and rent for market rate.

I get much more cash flow when I rent by the room than by the whole house, and when something breaks (normally) it comes out of the security deposit and that helps me fix up the house to make it nicer for the next tenants.

Although there will be a large deposit for electric. 

Hi @Kyle Potswald, Well come on, another Kyle from the city I’m from, Lakeville, it’s a match made in heaven, lol.

While I'm running on the number, is it a good idea to ask the constructor for the proof of increase so to make sure I'm only paying for the difference instead of paying more to match the current market?

The tenants pay a deposit for "escrow" for these at move in.

What should I do with their security deposit? 

If they return the rental empty with no damages, you'll hand them the deposit on the spot and part ways.

Your job sits where the new purchase is owner occupied, you have a lease and deposit for the old house, you are going up in value.