Actual Lenders Title Insurance states;CONTINUATION OF INSURANCEThe coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.

I say if the tenant damaged it, it should come out of their security deposit.

I am also a lawyer so secured notes don't scare me either as long as they are local, because I can foreclose on my own liens and I'll end up making more money in attorney fees than my original payout.

I believe I can be able to service your needs with a more competitive rate and help secure a better rate on your ROI, if you would like we could chat, go over your needs and see if I can add value to your situation and hopefully save you some money compared to what you will be paying a property management company. 

Your security to being paid back is a second lien.

I already have experience managing properties and I’ve been learning a lot about renovations (I just can’t do most of the work right now due to the pregnancy), so I’m trying to find the best route for me now while also securing a little home for my little family.

I can bring capital to the deal, partners and then a combination of loans/hard money to secure the property and start the rehab.

I will incorporate your method when I structure my partnership.

Their security deposit is only $400 which doesn't even cover the cost to paint the whole unit. 

@Justin FlournoyI would recommend investing in rental property, using the BRRR method to minimize the cash out of your pocket.Investing in real estate should make you more money in return than a large down payment is going to save you over time.