The reason is that encourages tenant to pay last month rent and leave you place clean to get their larger deposit back.

Check with your lender, or find a lender that offers FM products.You are concerned about tenants leaving - IMO always better to find your own tenants.

My question is whether I should use this $49,000 towards a rental now, or leave it in my account which will supposedly grow to be about $85,000 in 9 years. 

My plan is to close on the property soon, leave the tax debt as is, and try to market and sell it before the auction takes place. 

Can't wait to leave Wyoming and move to Arizona next year actually!

I also see that Katie Lepore has some great information.If you have any questions please feel free to leave a reply or DM me. 

You should plan to leave 20-25% equity in the property.Based on the above, I ran the numbers on my end: I'm showing ~$280/month cash flow, which is pretty darn good for a SFR at this price point.

The one that is leaving wants his security deposit back.

For one, you have a limited time period to find a new property, which could leave you in a vulnerable position from a negotiation standpoint.

Be polite and leave them with a good memory, and you with a good feeling for your next call.