So yes in my mind your paying a little more for security and piece of mind.. it all depends on your situation..

They have saved up about 5k and I have another 2k in security deposit.

This is due to the fact we have become more experienced, more stable thus reducing his risk, providing quicker turn around cycles and w now have better assets securing the funds.  

That way, when they leave in a few month you can deduct any unpaid rent from their security deposit.  

"Mortgage" is the security instrument used in ALL those loan transactions.  

That was the price the wholesaler who we bought it from secured it for.6th - We currently have this property under contract and our investor is getting finance.

I really want to secure a financial future for my family and see real estate as the best way to do that.

There would be no reason for me to move into the 4-plex unless I legally had to, to secure the FHA loan.Second question, If I do legally have to live there, How long after living there can I move out so that I can generate extra cash flow off of the 4th unit?

If keys are missing their security deposit is charged.

They also like having time and security of knowing they have a buyer.