A garden variety LTR, whether in Houston or Ohio, conventionally financed, is not going to provide meaningful cash flow. 

The deposit is to protect the property from damage and unpaid rent. 

To provide more information, I am in the Nashville area.

The way most people do subject to deals is by setting up a system of checks and balances providing some protection for both buyer and seller, and trying to avoid alerting the lender that a deed transfer has taken place.

I can't work with them at all because they refuse to provide the original purchase and sale agreement.

If you do not already have a qualified real estate attorney and an asset protection attorney I would add them to your team.

Biggerpockets won't let me hyperlink out of a forum, but if you go to themoneydummy .com and look under the marketing tab, you can see my SEO strategy (it's pretty high level, and I do intend to provide a newbie SEO post at one point or another), that I'm using to take over Google in southern Wisconsin. 

You have protection from the mortgage an insurance. 

They provide a document confirming this at closing as well.I would not recommend lending money directly peer to peer for your first deals.

They may be able to provide insights or identify any areas where costs can be reduced.