You need to have someone secure the property immediately or coincidentally, your furnace, HW Heater, and copper will come up missing within days of their moving.  

Are you doing a year-to-year lease or are you able to secure secure a longer term lease?

(I'm sure someone will chime in with "you're asking for your home to be ruined" but I lived with 5 SDSU football players and not a thing went south).5) If students DID cause damage, security deposit will cover just about everything. 6) Usually, Financial aid or parents pay for rent, which means you don't have to be worried about not getting your monthly paycheck ;). 7) Lastly, I plan to fix it up in those 2-3 years that will attract the slightly more responsible tenant. 

Stephanie, I think one of the best strategies to build financial security and long term wealth is buy and hold.

I assume it would be ok to request this tenant for proof of his lay-off - in terms of a termination letter or correspondence, before I OK his lease termination ? 

An "A" would generally be new construction, with newer amenities and finishes (security, granite, well lit, open floor concept, etc.)Likewise, an "A" neighborhood would tend to be an area with newer properties, a top-rated school district, high-wage earners, etc.

The total indebtedness secured by the residence (including the Line) cannot exceed 80% of the fmv of the home.

He says that since the apartment is not legal, the lease is null and void so we have no grounds to demand rent or evict him.We also have no security deposit.

I see people get fined all the time when "The broker promoted a property without inputting a corresponding listing into the NWMLS database."

There are definitely a few benefits to keeping them separate, and potentially legal implications depending on where you invest:Opening a separate account for security deposits will ensure that there's no chance of them being spent - this is the one that might be legally required as well.Keeping a separate "operating account", even if you're not a business, can absolutely help you keep the two sides of your finances apart and more accurately track income vs. expenses and the reserve level that you have for the properties.Theoretically, if you're using a very detailed budgeting/outflow tracking application or scheme, you could make the operating account unnecessary...but it's a very small action that will help you simplify things greatly, especially around tax time.