My leases state that any monies the tenant owes (fees, utility bills, etc) are "payable AS RENT" so that if a tenant does not pay that amount when the next monthly rent is due, I can take the appropriate actions the same as any other unpaid rent situation.

Nevada is a great place to invest because it's landlord friendly, low property taxes, tech job growth, population growth, and no state income tax. 

This particular time they were giving me grief because my contract doesn't state I need the deposit right after signing the lease. 

:-|I'd go to your state Division of Banks & Secretary of State, looking for their Licenses, Filings and maybe Complaints.

Like you said it's more impactful to lower priced area ; state that doesn't offer dual agency and most homes are purchased with FHA/VA. 

Are you licensed in the state where the property is located?  

Florida has just passed a state law defending landlords against squatters!

I’m coming up with my list of states that I will target and I am stuck! 

Cash flow is tough right now, as you probably know from podcasts, articles, running your own numbers...but not totally impossible.

Here's the 2007 table:http://www.irs.gov/formspubs/article/0,,id=164272,00.htmlThere are numerous deductions and allowances you can take that will reduce your "gross income" down to your "taxable income".Jon