In our24 years of experience, managing almost 100 S8 leases currently, the average S8 tenant has a FICO under 580, numerous collections from utility & cell phone companies, doesn't want to pay a security deposit, much less an application fee and claims they don't know how to fill out their S8 paperwork despite being in the program for several years - hint: they want YOU to do it for them.Most, not all, are eligible for government assistance due to a funeral-march of bad choices.REALITY: you are trust trading one set of problems for another.You can succeed with S8, but you need to understand the challenges and plan accordingly.

Or for Closing cost, Ernest money deposits, etc.

For example contractor qoutes you 30k for renovations with a deposit of 10k.

The tenants must have a strong application and a landlord reference with the cat, pay a larger deposit and higher rent, and they are inspected more often.Nothing will stop the odor.

I think that is why I found the deposit so appealing because they would handle all of the above, seemed like a better way for REO agents. 

Prior to anyone submitting an application ensure you share your rental criteria clearly ( i.e. credit score, your preference on acceptance of rental collections, evictions, felonies, misdemeanors, pets etc. ) as well as sharing any additional charges ( i.e. monthly pet rent, pet deposit(s), security deposits, admin fees etc. ) people unqualified will usually "walk" as this stage and that is where you will save time. 3.

I just want to make sure that I am able to fully validate all of the financials and not on the hook/forfeit my deposit if the numbers do not match what's being advertised. 

Typically lenders would request 2 months of rental receipt + bank statement showing the tenant paying the 2 months of rent to the landlord OR 1 months of rent + security deposit if the lease just started.

Can the 3 weeks in lost rent be taken out of the old tenant's security deposit or would we need to seek for those damages separately in court?

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.