If its under deposit, it's under deposit. 

If for some reason I change my mind, or when I see it its way worse than I thought, I cancel, my deposit is refunded before I even start paying for inspections.  

The long term leases lets me get the cash deposit as well, just in case they end up damaging something.  

Or lets say a tenant causes some damage beyond their security deposit.

Bid, win, give deposit, close.

(this would be quite natural since I'd be nearly fuming at that point) Maybe reiterate things like rent, late fees, deposits, early termination,....the things that tenants don't like to hear about.Just an idea.

I selected a small local bank for my LLC due to convenience of checking/deposits/withdrawals/walk-ins and certified checks (for auctions and closings). 

It's usually damn near impossible to win against an inspector, but it's often worth naming them to get party depositions against them.I'm not sure what the statute of limitations against failure to disclose inspection defects is in your state. 

Rents and security deposits, all payables.  

I'm unsure if I can include that in her monthly income as I'm sure it fluctuates and isn't something I can truly verify because it's not part of her paycheck but a separate deposit every month.