I was wanting to test the market and the recommended agent, as to her knowledge of the local area, the suggested rent amount, and the recommended property management company.

You have an obligation to have it repaired in a reasonable amount of time.

Mitigation also comes from being able to keep or use the security deposit for rent, but this is the absolute last resort especially if there is damages done to the place. 

@Devin Londo As @Sam Shueh hints, the objective of an exchange is to match dollar amounts, not properties.

I don't have enough capital to cover the loan amount he is asking for.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

If the owner is getting paid by direct deposit there is information to trace.

What happens to the security deposit when the tenant exits the lease but the ex wont?

Stop issuing 1099-MISC with box 7 "non-employee compensation" instead of box 1 "rent"Stop including refundable deposits in rent incomeProvide annual reports clearly delineated by propertyLearn the difference between maintenance, repairs and improvements and report accordinglyReport insurance reimbursements separatelyProvide supporting documentation: itemized contractor's invoices, insurance adjusters' reports etc

Account Closed  someone loses there job and you want to sue them .. give me an   a swear word break.. although in practice most board of realtors contracts state that the liquidated damages are limited to the deposit that was put up..