Tons of practical advice from marketing, screening, dealing with lease violations, evictions, inspections, security deposits, and more.

I have a past tenant that will not respond to calls, voicemail, email, text so that we can return his deposit and mail.

Do I form an LLC, how do banks look at money deposited in my account, profit sharing etc.

I plan to get an additional checking account for the property, with a sub account for security deposits.

There are several ways that you can go about it, but one of the more common ones is for the private lender to clone a hard money loan structure, whereby the interest rate and leverage would match that of a hard money loan.

Unfortunately, my research so far shows low nightly rates that don't match the high purchase prices. 

Can I ask for proof of deposits since the start of their leases 6 months ago?

For example, you buy the place and the tenant could claim the Seller allowed them to paint the walls black or that their security deposit was twice what the Seller claimed.

Like where I live, it's normal to do one month of rent for first, last, and security deposit. 

You can filter by the beds and baths and other aspects to make the results as close as possible to the one you're comparing.When I build my semi-automated hotsheet for investors, I take exports from the MLS from both the sales side and the rentals side, pull them into a SQL Server database, do some data cleaning to screen out as much of the garbage as possible, and run what I call my "magic query" that joins sale listing locations to rental listing locations by a conditional match on subdivision and beds/baths, or the average of the entire MLS if the subdivision is given as "METES & BOUNDS", with a flag in the output showing that those M 'n B rental numbers are MLS-wide averages for a given beds/baths and will need a more in-depth evaluation (like rentometer) if the estimated cash on cash return for a classic 20% down scenario, looks promising.