It's all about the money.Many bought the belt line with grants, TAD bonds etc. in mind to develop the land.

I've incurred some expenses with inspections, rental business license, some repair work done, and installed a security system. 

I've been reading the mass.gov literature and have pretty much decided not to mess with security deposits if I can help it.

Too many other states where I can get great returns and have them out in 3 to 4 weeks time for the whole process.Are you allowed there to require large security deposits or advanced fees to cover such a scenario??

You need to be financially secure before buying all those nice liability things.

I allowed the tenant to stay, but doubled his security deposit because he now posed more of a risk and I wanted enough money in the coffers to cover the cost of eviction if necessary.

Chad,Your flip income will be taxed at ordinary rates plus Self-Employment Tax(Employee + Employer Halves of Social Security and Medicare).Did you do this in your own name?

Secure yourself an ample due diligence period and then use it to interact with the tenants to see how satisfied they are with the building.

Since they don't have a mortgage or any other instrument securing my property - what power do they really have at the end of the day?

Maybe keep your reasonings why vague...say it's for "home improvement", and when they offer secured against your home, just say "no thanks".The 0% check offers that credit cards send out are not expensive.