Would it work to require a higher security deposit to reduce the risk?

It has to be very secure & the railings must be such that they do not allow kids to climb them or get their heads stuck between the spindles if any.

Just trying to secure this property with cash (in competitive market) and cash out refi as soon as possible!

The property have both equity and cashflow, but how can I secure such deal.

Like a higher security deposit and/or a cut of the net profits. 

I want to try to secure an FHA Loan for a house hack, multi unit home in Chicago.  

Erik - just an FYI any passive investment or JV partner investing in a deal with you is considered a security if they are strictly passive and have no active role in the JV or LLC thus requiring an exemption with the SEC and the State to be filed. 

Specifically who will do loans to cover downpayment on multi family properties secured by equity.

If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans.) 

At signing of the lease, I got first month rent, last month rent and security deposit (equal to one month rent).