A new escrow officer without backup will likely reject the file or freeze up. 

I would not want to face a judge with a borrower filing a lawsuit claiming that the loan was improperly serviced.Loss mitigation is doing borrower outreach to try to resolve the delinquency of the loan. 

Then, when you send the accounting of their security deposit, deduct that fee.I assume your lease and this fee is in compliance with TX law and TX law allows this fee to be deducted from the deposit.

Find and connect with other BP members that are in your area.Set up keyword alerts to be notified of the topics that interest you.Read Beginner’s Guide.Check out BP Podcasts.Find upcoming real estate events and meetups near you.Check out the file place from time to time or do a direct search.If you'd like to tag someone in the conversation, type @ followed by their name and then select the name of that person that appears below the comments box.

If you have 16k cash and can afford the holding costs, live nearby and can keep the property and rehab materials secure it might work out.

@Logan Jorns Would highly suggest getting in touch with a securities attorney (as also pointed out by @Chris Seveney).

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.

For California the annual fees is too high, and also if I use an llc in California I would need to file taxes two times so there’s a double accounting fees.

My accountant can't figure out if, in addition to Form 8824, we also need to file Form 4797 for this.  

Explaining the process and security they have if things go south is whats gonna get them to sign.