What could you renegotiate that is not in the lease currently or that long term could be a benefit in your favor to change now in exchange for some rent relief in the short term?

Just don't invest any money you're not willing to lose.If you can find a private lender, that'd be ideal as the terms you get are going to be a little more favorable and it still keeps your risk lower than using all of your own cash.

My previous concerns with NY real estate are largely well known already- high bid up sale prices, low CoC return, highly favorable tenant laws, etc.Now on top of the rent moratoriums from COVID, landlords also have to deal with new statewide tenant protection laws enacted toward the tail end of 2019 that provide an astronomical amount of tenant protections. https://www.rebny.com/content/rebny/en/newsroom/in-the-news/2019/Housing_Stability_Tenant_Protection_Act_2019.html/also not looking good for "mom and pop" investors: https://www.amny.com/news/rent-laws-new-york-1-32225521/Bottom line is, I'm sure there are NY residential landlords in here. 

The submarkets that were out-of-favor and cheap suddenly become very popular among home buyers and renters.And that, of course, is the point at which investors like you and me start to salivate uncontrollably!

Sometimes with a BRRRR deal the property is in such bad shape that you can't get a conventional loan because banks wont do it and you have to get a hard money loan which can have less favorable rates and terms.

If you do proceed, I would recommend to 1) lawyer up so your investor is best protected in whatever arrangement you decide to create, 2) walk the site and speak to planning to confirm that your strategy is sound, 3) work with Sirkin or G3MH to draft a TIC agreement that favors the agreed upon strategy and lastly 4) Purchase more than a majority % to have more control.

But, I wasn’t sure if banks tend to favor one scenario over the other. 

But, I wasn’t sure if banks tend to favor one scenario over the other. 

I wanted to ask for 2 months security deposit  to help protect against something like this happening again and was wondering what other residential landlords are doing in California given the laws favoring the tenant.

The other Realtor will love you since they will double end the deal and get the full commission (don't expect them to give you any favors, though, since they still work for the seller).Good luck with your deal.