Annette in my opinion it boils down to security and risk and your comfort level in those two areas. 

I have to maintain security practices.  

I'm considering a rental agreement that states the move-out date in the contract (with option to extend under certain terms), and has them pay the full 2-3 months' rent up front, with a half-month security deposit also due prior to taking residence.

I am currently procesing an eviction for failiture to pay two months of rent, how ever this is an inherited tenant from when I purchased the property whom I dont have any social security or ID information of him just his name.

But anyway, should I charge them some small amount, maybe $200, our of the security deposit even though I was going to be replacing the carpet anyway after they moved out?

If so, they will often not have very sophisticated systems in place.

The idea is to use investor capital to secure rental units.

What kind of LOC is it (i.e. secured, unsecured) and do you know for sure it's legit? 

I am just getting into Real Estate by obtaining my license and working to secure an inspection franchise.

Better job security and I am not subject to his/her rules/standards if they become outlandish.