At the end of the lease it must have a working disposal or it will come out of the security deposit.

The rent on it currently is half the market rent due to the sharp market upturn, and the security deposit is only $250.

Sounds like an auction site.. i know of one that does require the buyer's information to be inputted, with a valid credit card, with a small deposit.

In general I put down an earnest money deposit of 1% of purchase price, which is a much smaller amount.

I let her do 2 months rent (the deposit plus a month) and she clean up before she left, and we'd call a clean split, I would take utilities back over.

If your HML is keen to keep lending to you, wouldn't you still have enough cash for another 20% deposit for ANOTHER similar investment, straight away?

You should have in a contract that you will be putting up an initial deposit to make the contract legal.  

Where people have trouble with this approach is when their deposit-getting loans are NOT backed by existing equity; because Lenders do require to know how much they already owe, vs how much they're worth.

It is amazing how little it takes to Control so much.Some of the words and concepts that can be used when trying to create that great transaction-----Right of possessionDelayed settlementCheck fundsContract candy - buyer incentives Meeting of mindsBanking daysAssignment Release of liability Hybrid offerAbsolute auctionSubordination Stutter clauseSubstitution of collateral Principal mortgageRight of first refusalSplit notesChattels for deposit and tradeFront porch clauseSeller participation Bidder buyers bonus Tax deferredPiggy back transaction Seller refi for take overShort joint venture Option buy backCreating financing works better than conventional financing all of the time.One of my favorite formula is Control & Roll - a method of Contolling real estate with a skinny contract offer and fast turn over for a cash profit.JD --- I hope some of these ideas will help you in search for profits.Charlie

Hey @Isael Galarza I normally put $100 earnest money deposit and have put as little as $10.