They (homepath) are not as friendly to investors regarding inspections and I've heard they will keep your deposit for almost any reason if the deal doesn't actually close.

Scotty,I would do a walk through and if there are items the need to be done that would affect getting their deposit or part of their deposit back, you could let them know if they help you with a renter by them showing the home you will give them their entire deposit back.If you have a good relationship with the current tenant you may not have to make that offer, speak to them and see where you are at.How long do you plan on keeping the rental property?

Make sure you pay all of your taxes(biz & personal), make timely federal deposits and file timely because if the IRS gets wind the attorney is the third party and won't be liable unless they're an officer in either your company or one of the charitable orgs....

A few other things were fixed.After the concession, prorated rents for April and security deposits(which I'm setting up a separate account for):I only had to bring $13k and change to closing.Property ManagementI feel really good about the lady who runs the PM Company in place.

When do I initiate escrow so the funds can be deposited for "Safe Keeping" until closing???

Out here that takes the form of a Certificate of Deposit.

I have heard both schools of thought, just wanted to hear peoples views on deposits from buyers?

A creative cash advance for a real estate venture deposit...Pat

In a class c neighborhood you need to consider that move-out costs are going to be much higher, because it is going to be very difficult to attract a tenant that is going to pay the right amount of deposit.

But ideally, we lock up the property with 10% down, and once the end buyer has given their deposit, the lender's funds would purchase/close on the land, fund the construction, and once complete sell the house with the previously purchased land as a typical spec house.