you have to be positive that the numbers will yield profit for all involved parties. if you aren't sure of the exit strategy or how you will secure funds then you still have a far way to go. do you have cash buyers with verifiable proof of funds lined up?

I am sure the seller figured if you could come up with $400K and with the property to secure the loan, that the risk was low.

My thinking is that even though I won't be getting a great return (5-6%), I'll have 100% equity that will allow me to easily secure loans in the future.  

We have a line in our lease addendum that states if the tenant wishes to break the lease that they pay a one time fee equivalent to 2 months rent and forfeit their security deposit.

Less security and harder terms for your buyer from a lender when you sell.The real test on the strip center is the quality of the location and demand for a spot.

When tenants move and I return security deposits, should I divide the deposit equally among the tenants and write a check to each tenant and give an equal amount?

Hi Brendan ---Most Lenders use the Build First method with 3 even draws.

Second question is whether security deposit should also be charged on credit card or is it better to request a check?

Should I take the security deposit from them or closer to the moving date?

Focus your efforts on what ever is necessary for you to find a job that will be more secure.