Money is direct deposited into her account actually through her company.

The main difference is that instead of flipping it for the profit you COULD make, you would be borrowing against your added equity in order to get all your deposit back - to Repeat, Repeat, Repeat... 

@Scott Ellis The simplest way to solve your issue is draw down on the LOC or Heloc either one and deposit the money into your savings account.

I've posted a few articles below which outline the new and most restrictive ("progressive") rental laws in the country, which limit the size of security deposits, non-refundable deposits, and requires giving tenants and option for a payment plan to pay move-in fees.

I did not and refunded the deposit and sold it to somebody else.The buyer got "cold feet", literally.

Going with a TK to get started is a good way to get instant cash flow.  

I'm wondering if I should establish a separate banking account in which to make deposits and let the bank draft the mortgage payment from that account. 

We will be renting a SFH to three college students beginning in May, and would  like input on how to set up the security deposits.

Make sure your security deposit is max allowed and screen well if you take on a tenant.PS - What are your lessons learned for flipping a home faster?

(You get a security deposit, utilities in his name, etc.)