As for the security deposit, it will depend on the title that it was collected under, security deposit or advanced rent.

I've seen people ask for bank statements verifying rent deposits (not always easy to get from sellers).  

They want “instant” gratification.  

If I acquire the second property with full cash, that's at least an instant equity which I may be able to tap into for 3rd, 4th,..assuming properties rise in value over time. 

Most S8 tenants have a history of bad decisions and from all that, many have only learned how to game the system.We embrace S8 applicants, but screen them just like any other applicant.Many have an entitlement mentality and try to leverage their S8 voucher and pretend to be helpless:1) A percentage won't apply because they expect a landlord to waive application fees for them.2) Many cry broke and expect a landlord NOT to charge them a security deposit.3) Many of those same S8 tenants trying to avoid paying a security deposit, won't make an effort to call the list of nonprofits we send them that will pay their security deposit if they apply.4) A lot of them try to avoid paying for utilities.

Hi Evan- I have a lot similar feelings, as I'm a younger investor as well.I'll say this- We live in a world now of instant gratification.

For the security deposits - since we will take over is the seller required to transfer those funds to us?

They are are not lenders they say they will close your loan and act as lenders they kept my deposit and sent me to other brokers They are fake with no credentials they are a scam

For example, each of my properties has a main account and the sub-accounts under that for CapEx and security deposits.

Security deposits require separate handling - they should be placed in an interest-bearing account.3.