They actually get penalized for good business decisions and rewarded for bad ones just as long as they conform to the rules.For example, I know of bankers who got huge bonuses before the collapse that approved loans that the numbers told them would default because they were rewarded for just writing loans, not writing good ones. 

Like it or not, lenders and selling banks are overseen by government regulators who often prioritize owner occupants in policy decisions and talking points.

Fear is a poor driver of decisions. 

You shouldn't make a purchase decision based on any of it.Spend time building a relationship with your seller....thats probably the easiest way to avoid unnecessary wheel spinning!

And the landlord is ending the lease, not the tenant.Of course, if your lease and, more importantly, the laws of Ohio say differently, and if you desperately need to keep the money, then it's your decision. 

@Jonathan Godes the advice you provided is incorrect, however no fault to you as the code surrounding a situation like this is extremely complex :)@Kurt Pourbaix To answer your question, if all you are doing is lending then this will be considered a passive activity for you so your profits will completely avoid the SE tax aspect.

Sounds like a good idea, but make sure you write it all down and your plan before you make a decision.

Others can make their own decisions.

I would like to get as much information as I can out of a client/individual before I even make the decision to meet them. 

That is what you really need to know to make the best decision.