It's great to hear that I'm thinking about this the same way.I was talking with my PM this morning and he even mentioned that they will often require a 1.5-2 month security deposit on the lower priced rentals (based on tenant credit and financial background).

It was my understanding that the security deposit was to be returned, minus any unpaid rent and damages.

We had a security system installed into the home due to unsavory individuals looking to find some tools at a discount.

Make the asset secure itself- In larger multifamily homes you dont have to actually have all of the cash on hand. the asset will secure itself due to the nature of the facility. 

Hope this helps.Partner 150% OwnershipSelect ProjectAgree to Price of Offer and Other Conditions Submit Offer to BrokerAgree to Rehab Plan and Schedule Prepare Funding Opportunity Document Solicit Investors for FundingCoordinate Funding for the ProjectCoordinate Documents with Attorney for Funding Coordinate with Attorney Closing Dates and Fees Coordinate with Real Estate Broker on DetailsSecure Property Insurance and have Utilities Activated Secure Bank Account to Pay BillsPayments over $500 Require Approval of Both Owners Prepare On-Line Advertising for Property Available for Rent Upon Selection of Tenant Run Criminal and Credit Check Agree to Rent Amount and Security DepositProvide Updates to our Private Investors as to Progress of Project and Coordinate with the Bank on the RefinanceRequest Appraisal as soon as PracticalProvide Personal/Business Credit to Secure Refinance Close on Refinance Within Scheduled TimeExit StrategyPartner 2 50% OwnershipSelect ProjectsAgree to Price of Offer and Other Conditions Develop Plan for RehabDevelop Construction Schedule Develop Budget for Rehab Coordinate with Outside Contractors Initiate and Complete RehabLabor will be at cost as part of Participation to Operating Agreement Agree to Terms on Funding Conditions i.e., Interest Rate etcCoordinate Permits if Applicable with Government EntitySchedule Inspections and Remedy ComplianceSecure Certificate of Occupancy or Final Inspection Approval Both Members will Agree to Pay BillsPayments over $500 Require Approval of Both Owners Coordinate Showing Property to Prospective Tenants Select Prospective Tenants and Recommend to Member Agree to Rent Amount and Security DepositClean Up Property for TenantProvide Property Management and Maintenance Provide Personal/Business Credit to Secure Financing Exit Strategy

When it got near my target price, I submitted an offer and secured the property for slightly less than my target price.

Think of 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.

I was told by a Massachusetts tenant/landlord lawyer that we could require a pet security deposit for service animals. 

I'm in the middle of one currently, still in rehab phase, not exactly a BRRRR because I bought it outright and secured a commercial loan on the property itself, but i would love to meet with some people in the area to bounce ideas off of.

First off, you're asking for an investor to fund 40% of the deal, and bank to fund 50% and youi 10%, but you don't say how each investor will be secured.