When you purchase the property, the security deposit should be 100% intact and there shouldn't be any projected deductions from it.

They were referred to me by a friend of mine who owns the a large local business.

Purchase price: $81,000 Cash invested: $210,000 Nearly full-gut rehab in the Captain's Landing Subdivision.

I highly recommend that you utilize a low down payment loan (preferrably 5% down since it has less closing costs, you can get out of mortgage insurance once you hit 20%, and you save your FHA for another purchase) and move into a 3-4 unit property.

If I had friends over we were constantly in close proximity to the rest of the family to where everyone could hear everyone else.

Hi Arvin, On a 1-4 unit property, many lenders will allow up to 85% financing for an investment property purchase. 

Purchase Price: $39KRehab Cost: $32KARV: $100K  As you can see from the pictures, We redid mostly everything here; Windows, doors, flooring, kitchen, bathrooms and drain tile in the basement. 

Because of what my goal is with this purchase , I am open to most ideas if it works.

He's very investor-friendly and walks properties for free.

Check in with @Joseph Chiofalo he is a close trusted friend and strategic lending partner of 20+ years.