For example DSCR, no ratio, CPA letter, P&L Statement, average bank deposits, 1% down for primaries? 

I suggest you be sure to give the good faith deposit to either an attorney or the settlement agent, never to the seller.I'm a little concerned that the seller is your neighbor. 

She thinks it’s ok to stay for free and she deserves free housing, non paying her dues or any thing just because she does not have a job (on purpose) and does not have money ( has all money for fancy furniture and gadgets)But anyways she has not paid her move in deposit ( paid partial) and has not carried renters insurance.

Your current Lease and payment terms are recognized until [DATE]; however, moving forward, please send all payments, maintenance requests, and correspondence to the address listed at the top of this letter.If you are currently using an automatic draft, cash deposit, or other form of payment to pay for your residency, please contact your financial institution immediately so as to avoid any late fees and/or eviction notices.I have included with this letter a Tenant Update Form for you to fill out.

Work with the other PM to get deposits and leases transferred. 

If they look fine, do you see her employer's name there making deposits? 

Since our goal is to scale in real estate and we do have the funds, we would prefer to minimize the deposits and invest into reno where necessary and keep the capital for now for improvements, if they arise.

Or they sign the lease, pay the deposits and then change their mind and want their deposits refunded?

Jeff Beach the owner has taken deposits for over 2 years from clients.

I figured I could squeeze out an addition $100 monthly per house by adding a bunch of junk fees into the fine print of my leases which my tenants wouldn't pick up on and could take  from their deposits.