I have a contractor who reached out to me and wants to partner with me. he wants me to secure the property and pay for the material and the work but wouldn’t that just be me hiring somebody?

If your after long term investments then there are other more secure ways of making a 7 to 10%+ on your money for example like buying A paper notes ( mortgage Notes) than a saving account or stock market.

How much do you ask for when asking for a security deposit?

Better for taxes, more secure and you have a bit more of control.

By paying it off you increase your security. 

I could move into a property that looks like a good deal (either in SF or the Easy Bay) and secure an FHA for 3.5% down by virtue of living in the property as my primary, rent out additional rooms, and essentially function as the property manager.

The one that is leaving wants his security deposit back.

They're widely available, many of them open-ended (meaning you can buy in tomorrow, next year, whenever) and you're not under the same pressure to find the perfect property.In the past, private equity funds were generally closed to "accredited investors," a sub sector of affluent investors who -- perceive ably -- have more money and therefore must be more savvy.

Second, you need to cover a wide territory with minimum time so don't waste too much time on unmotivated sellers.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.