The lease term works out perfectly for my timeline, the payments and deposit will be made by the insurance company, and I will still do standard background and credit check on the tenants.

The lease income can cover the CapEx (and hopefully provide income), and you can use a security deposit type of write-up to make sure that the machines are returned in decent condition.Short answer: Don't just provide a washer and dryer.

Can I deposit the funds into that account?

How much of a deposit do you have them do?

You won't have time to deal with this once you start looking for properties so make sure your PFS, tax returns, and funds needed to pull the trigger on the deposit and closing are in place.I don't concur with Kim Younkin on getting pre-approved for commercial financing as there really is no such thing.

Related question...Assuming you qualify, can a person house hack on commercial multi-family (5 units or more) and get the same potential benefits such as low deposit (3-5%), taxes, and only a 1 year live-in requirement?

I opened an account at a credit union nearby, gave them my business name and member number (not account number) and they can just go deposit it for me at the teller station. 

I'm giving back a security deposit for a 1-year lease that just ended (Have since switched to fees).

Every No-credit-no-job-no-money-no-worries pitch I've come across starts with suggesting that it's easy to start with Wholesaling, which would mean that you wouldn't be buying this property for yourself, but, you just need to get it under Contract for next-to-no deposit, and then assign that Contract to an end-Buyer for thousands of dollars more/profit on closing day!

I did offer shorter closings and a higher earnest deposit which I think is a great way to put you ahead of other financed offers (<--pro-tip) but this comes with slightly greater risk and I'd only advise if you have strong and almost guaranteed financing in place.