We have also recently started an LLC, which we use for a small business, but would it be beneficial to try and do this through the business, since the other two properties were secured under our personal name?

It goes towards the down payment for the purchase of the house.Even if it didnt, and was used as a security deposit, it still is never ours (unless they damage the house in some way).Is this correct?

My payments are 1200 a month, me and my wife (we've never married) have secure, decent jobs and can save about 1000 a month.

Since they're moving out early, you can usually include the cost of re-renting in the items deducted from their security deposit.

I'm in Texas, and I attend tax and foreclosure sales regularly.

They will require him to sign a promissory note and maybe require it to be secured by ALL of those other properties for the difference between the short sale amount and the balance.Well, at least that is what they would likely do in saner days.

This would eliminate your ability to retain the security.

Heard of Security Real Estate Services (aka Fairfield)...but before you approach them, do read about what they were alleged to have done in the Le Jardin development...

Most likely gold coins and secure them where I had ready access no matter what happens.

As the entity grows, your intent is to market that investment as a product to where investors could receive fixed and secured returns.