Where Do you end up putting the security deposit?

It sounds like your primary goal is financial security during this transitional period.

My goal is to slowly fix and rehab, I plan to live in the home for 1-2 years, I am not too worried about the return right now my main focus is getting a first home under my belt to learn as much as I can, hands on and continue learning and saving money vs saving and throwing my money into a rental.

From your story I gather:first, you secured financing through an FHA loan with a 203K included (where you planning on living there for one year to meet the fha requirements?

Today its guys or gals just throwing up a non descript ad on Craigslist with no pictures, very little information and no real way of contact them except through the CL email system. 

Our first property was under-rented by $200/mo, with no written lease agreements, no security deposits and no pet fees.

I anticipate on getting a FHA loan to secure financing. 

Vinyl would throw this way off.

I know some landlords just throw the notice up as fast as possible, but we try to talk to the tenant first. 

Throw on a cheap 4x6 subway tile back splash and you'd be in it for *maybe* $300 in materials.