Our lease contains a clause stating the security deposit cannot be used for the last month's rent. 3.

We completed our due diligence within 10days and once the report came back, we immediately requested our deposit back. 

Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

I'm not saying the list is ridiculous,  because all safety concerns should be addressed.

As a PMC, we allow tenants to:1) Mail in rent (we charge a Processing Fee)2) Deposit at our bank (we charge a Processing Fee, but less than the mailing one)3) Use Zelle, Venmo, etc. 

Here's a good folder setup.Bank StatementsCredit Card StatementsProperty Management StatementsMortgage StatementsSTR Platform StatementsInvoicesReceiptsClosing Documents (Purchase/Refi/Sale)LeasesCheck & Deposit ImagesVendor ContractsW-9’s & 1099’s

You can't beat the price, either, or the interest rate on deposits.

Later on in your investing journey the safety and low management of expensive, appreciating properties will become appealing.

Sellers may struggle to mentally shift from "owner" to "tenant," which can create challenges with boundaries and property care.Security Deposit:If you’re doing a temporary leaseback, be sure to collect a substantial security deposit to cover potential damages and ensure they vacate on time.

The deposit amount when working with a lender comes from the lender - it is basically the amount of skin the lender wants you to have in the game.