However, I've never done a rooming house before and wanted to know the best way to handle security deposits and how they may be applied to damages in the future.

However, I've never done a rooming house before and wanted to know the best way to handle security deposits and how they may be applied to damages in the future.

Real estate commissions were created specifically for the purpose of protecting the public from situations like this.

@Seth Renfro, there will be public documents about the bankruptcy in the town where it went through.

No evictions but one left my house in such a bad shape that even after security deposit still owed thousands.

Elec company says they have created new esid's and will re-install the meters but an electrician has to pull a permit from the city (still working on that with the goal of finding out if perhaps the city had a hand in the removal perhaps) - simultaneously, I reached out to the city director of public works on any info he can provide me with regards to whether they have any past actions on the property ( i would think if it is condemed, fannie would not have listed it perhaps?)

Bank security is pretty f'ing high. 

@Ramon Mota  It's really the same as a normal RE transaction except you provide the financing and not a bank.The buyer gets title and ownership and you place a lien on the property, securing your interest. 

.), fencing and security systems, and numerous other factors. 

Also, if something significant is revealed during the inspection, and you want to trade remedying that issue for a vacant first floor, that could be an option, but the issue should be material and not exaggerated, and the seller should have the option to remedy the inspection issue instead of making the trade.Lastly, and somewhat unrelated, you should always require that any security deposits, and interest accrued on such deposits, be passed on to you at closing.