As such there are regulations in place to ensure the banks are not taking too much risk with everyone's money and throwing them into high yield, high risk investments.

I have experience with a similar association for my rental property in WA.https://masslandlords.net/laws/security-deposits/

You can suggest that you will give their full security deposit back on the spot for a move out by x date.

If it was a normal pet deposit, you should receive it with the security deposit. 

Secure your property.

Normally you can use secured debt as a down payment however unsecured debt is usually not allowed. 

I made a sort of half-*** cash for keys deal where I would take her security deposit as the last month's rent as long as she moves out.

Be sure to run all this by your securities attorney and provide proper disclosure and documentation to investors.

When we did start looking, we initially wanted a multifamily for the obvious security in knowing if one tenant does not pay, there is still another to cover the mortgage.

They could have homes to sell and/or want to learn the area while gaining the confidence that the job is secure and they like the area ......So, the perfect option is to rent for a couple of years.