Half of the PM companies do not collect a security deposit.

If not older than (2) months they will see the large deposit and ask you to source where the down payment came from which is why you should take the funds out 3-4 months prior.That is why I always tell my clients to just do a cash out refinance so that you do not put yourself in this position when your ready to buy. 

We offer 4 different payment methods to our tenants: Online ACH via our PM software (no charge) Deposit @ our bank ($3 charge) Credit Card ($5 + cc fees) Mail ($10 charge)Notice we charge a fee for the less desirable options to encourage the behavior we want:)

We handle marketing, showing, screening, collecting the deposit and first month of rent, signing the lease, and getting the renter moved in.

I'm sure you've heard the stories on the news of countless law abiding convince store owners that have had their bank accounts seized for the sole reason they were making deposits of cash that the government deemed "suspicious".  

In regard to the auction, it requires an $11,000 earnest money deposit within nine days.Also, the site asks if you will be paying cash or needing financing.

Some of my tenants deposit cash into an account I have set up at a local bank. 

Also it's very very important you get the rent rolls and make sure they can show you proof of rent deposit and they have it rented. 

Do we:Use it all and put a large deposit down on an investment property?

The court will decide if you need to return the deposit.