What happenes to the security desposit?

My terms are 1st,2nd and security which they understood although I did not screen them yet or have signed 1 yr lease.

Hey @Paul leason my goal with this is to obtain financial freedom and security.

Even if only a small fraction of that can be "liberated" it's incredibly powerful.There are many ways to navigate the securities law issues. 

@Dave Meyer my guess is your best argument is the three suing you don't have a lease with you and the security deposit is not their's. 

My business partner and I are in buying mode and we're closing on a 3 family tomorrow because the deal is so good and the property will cash flow like a fire hose after we've made a few improvements/secured tenants. 

Is my only option to let them damage the unit and take it from security deposit after they move out?

Anyway, I am now a little older, wiser and more financially secure and have got the itch to get back into the game; the right way this time.

Hoping to get away from the 9-5, while securing a safe financial future.Looking forward to learning and building my business. 

You can come across several value add deals that you can buy with the cash up front, perform a necessary remodel (I say necessary meaning you do not have to go above and beyond to get a full 75%-80% bank loan), occupy with a tenant and cash out refinance.