We prefer to do move-out walk-throughs with the tenants, so they will not be surprised with how we handle their security deposit.

I'm a fairly new player in the RE scene, but can tell you a few things out of my personal experience.

Lenders I sort of answered this in A but you're asking a bank to lend money secured by you to purchase a property that you won't own.  

"Standard" due diligence on a loan made and secured against a condo should include reviewing the condo warrantable or non-warrantable status along with the economics and by-laws of the association.  

Some of you may recognize me, I posted in the forum regarding trouble securing financing in the USA as UK resident.I found some deals offering seller financing.

Get familiar with the way the market ebbs and flows, know the local players and make sure you become a household name for your niche if you decide to do this full time.It is my personal opinion that you should be able to figure out if a deal is worth calling the seller's agent after 45 seconds of spreadsheet work, not 13 pages.

I figured my heart was in the right place, but as a more novice investor, you always want validation from a more experienced player in the game.

If your end buyer is serious about the deal and is an actual player, the amount won't really matter because they plan to go through with it anyways.  

C then gets a security interest on the LLC's assets so he can foreclose A & B if the deal goes bad.

With one deal under my belt I am by no means and expert, but here is my "word to the wise" to everyone else just getting started.1) Know what you're getting yourself into, active RE investing with no cash or credit is not nearly as easy as many gurus may lead you to believe.2) If you're like me and want to get into wholesaling before progressing into rehabbing, sure it's good to take that time to learn to evaluate repairs and ARVs ect, but depending on your situation, it may behoove of you to invest some time in early on planning on how you're going to secure funding.