I am not a lawyer, but it wouldn't be a bad idea to put some earnest money deposit...

My attorney is indicating that it may be better to first create a new LLC B where all my funds would be deposited first and then pay off the bank.LLC B would also be under my name.

Great story- we send an loan offer to them and make them sign it and give us a refundable deposit of $250.00 as a payment toward doc prep prior to inspection and final approval.

Right now, I'm working on functions for Payroll & bank deposits, as well as refinements to the existing stuff.

Now, I need to get the money to my father to pay off the outstanding balance I owe him on the home.Is this simply a matter of depositing the check that I received and writing a new one to my father once the funds have cleared?

It's a duplex with one side rented.At one point I thought I had seen a document to have filled out prior to closing and signed by the tenant and the previous landlord basically clarifying the lease, what they pay, how much deposit was put down and those types of details just to make sure there aren't any surprise or miscommunications later.

The other option I was considering was offering whatever is left of their security deposit after repair costs and whatever costs are incurred due to the reduced rent (the difference in their lease rent and the agreed to reduced rent) as an incentive.

Can the security deposit be kept on this basis alone?

I am an owner of three rentals, and the way I manage my properties is that any outstanding balances are settled out of the security deposit, and I remember when my wife returned the keys and house we had to pay for a broken screen or something.

Of course, you will have college student tenants presumably, so get big deposits/cosigners and/or be an amazingly good judge of character!