If for instance the service life is 10 years and they are 5 years old, it seems reasonable to charge their security deposit 50% of the costs of replacing the damaged units.Here is the HUD Service Life list if you are interested:https://www.hud.gov/sites/documents/EUL_FOR_CNA_E_TOOL.PDF Good Luck! 

I'd highly recommend working with a lender who has worked with STRs before.

They may decide to buy a house or get a job of high enough quality that they do a background check on them and they need to get the judgment released in order to qualify.  

Hi Everyone,Right now, I have my tenants' security deposits in separate savings account at an online bank. 

Hello everyone, With deciding to start in real estate, my main goal is to create enough equity in the properties I obtain to build a house and buy land  (10-12) years down the line.Though the market always changes, I figured with investing into highly appreciating markets now, the properties I buy will accumulate the equity needed to be able to sell in the future which in turn will lead to the income needed to build and buy land. 

Do you have a contractor that you would recommend for Toledo?

Not RE-specific but I'd recommend Die With Zero by Bill Perkins and Revitalizing Retirement (focused on our purpose and relationship portfolios) by Nancy Schlossberg.  

If you sell a property in one year or less after owning it, the short-term capital gains is taxed as ordinary income, which could be as high as 37 percent.

Tips to ensure success if you are located outside the state/city the property is located. 

I would highly recommend that you focus on what you want to start out with first, flip or long-term rental.