Because the borrower is not personally obligated on the mortgages securing the investment properties, they are not included in the property count and the result is only two financed properties."

You can be as creative or simple as can be agreed.Over time, you may be able to secure private lenders for both short and long-term loans.

From his perspective, it was just another measure of security one should take so that if you were sued the LLC is targeted...

What do you think about deposit-free options for residents such as security deposit insurance?

If you leave faster than that, you will still have to pay for the full 14 days of rent and utilities;If you choose to depart early, I will not charge any termination fees;After you are out and return the keys, I will conduct a move-out inspection and handle your security deposit in accordance with State law.Landlord"

I believe it is called a pledged asset line of credit, basically the loan you take out is secured by whatever asset you declare.

I would have taken the cost to replace keys out of security deposit and just changed the locks immediately. 

Ps.I have a move-in move-out check list and plan to walk the property with them on the last day to verify the conditions before returning the security deposit. 

Let them know how their money will be secured with the property.

If the tenants are long term and the place is in good shape, I'd keep them and let them know you will be raising the rent.If you do buy with the tenants in place, make sure you get the prorated rent and their entire security deposit from the seller along with a verified copy of the lease agreement (if it was verbal, he can write it out and have them sign it to verify the details).