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. 

A majority don't even make it 18 months from shiny new license to toes-up in the parking lot.Leaving the relative security of a 9-5 W-2 job - especially one with benefits - is a risk that should be undertaken only with a solid plan for surviving startup. 

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.

Lack of social security in older age.

Although, with the state of the Real Estate market with very little inventory, they will be renting until they can secure a property to purchase.

Yes he is paid for the month, but your time limit for the security deposit doesn't start until he surrenders possession because if he has not surrendered possession than he could theoretically come in and damage the place.