If I felt the applicant had a significant weakness in one of my screening criteria areas, I might ask for a higher security deposit to offset the risk. 

For now, I have the security deposit and first month's rent going into my personal account and plan to start an LLC for a separate bank account, clean books, and potential asset protection moving forward as I acquire new properties. 

They have already paid the deposit and we agreed to deduct 452 from the 2k rent just for the first month for the days they said they are not able to move in...They first said they are unable to move in until the 8th of this month but then I just got told that they might be able to move in one day earlier so they say they will pay us $65 for moving in earlier one day. 

The money from the loan will be deposited into your bank account.

They have some innovative ways of dealing with things deposits for damages, insurance, etc. 

Costs can also include: appraisal, attorney fees, closing fee or escrow fee, mailing fee, credit report, escrow deposit for taxes and insurance, UPMIP, flood determination, home inspection, required disclosures, homeowner's insurance, lenders policy title insurance, owner's policy title insurance, prepaid interest, private mortgage insurance, property tax, recording fees, and title company title search.

That gives you the rent for the month and leaves the deposit to cover cleaning and repairs.

Do you do direct deposits?

Unless otherwise stated, the Seller will convey insurable title to the Buyer upon closing; otherwise, the Buyer has the right to cancel the purchase with a full return of their deposit."

PP: $149,900 Cash to close: $32,152 (deposit, down, closing fees, etc. - conventional loan)Net profit (after PITIPM): $490/monthCash on Cash Return: 18.2%**Please save all the comments about how it's not actually 18% CoC because I didn't include vacancy, repairs, CapEx, etc.