Tons of practical advice from marketing, screening, dealing with lease violations, evictions, inspections, security deposits, and more.

I would send his security deposit to last known address via certified mail.

I plan to get an additional checking account for the property, with a sub account for security deposits.

We are doing this to have 3 years to secure financing (long story).

You also are able to secure really advantageous debt on a A class assets which is another angle a lot of investors take when buying in these neighborhoods.

The landlord will say the the rents are current and the tenant will confirm the lease , terms and duration, and security deposit.

For example, you buy the place and the tenant could claim the Seller allowed them to paint the walls black or that their security deposit was twice what the Seller claimed.

Like where I live, it's normal to do one month of rent for first, last, and security deposit. 

Lead generation service is different because an agent pays lead generators without any direct coupling of the payment to closing (but with an understanding that if the leads are nonsense it'll put an early end to the relationship).It's this situation that gave rise to wholesaling, because ultimately a wholesaler is doing that same deal-finding service, but they get around the licensing requirement by buying the property for themselves with an assignment clause, and then resell it to an investor at a premium that ends up like a fee but officially is counted as equity gains on a real estate transaction in their own name.

The latter being the biggest issue, because we're able to fix immediately, and bill immediately thus leaving the security deposit in tact at move out.I just realized I read the second reply as the OP, but I can't edit it out.