My question what is the best way to have outstanding debts reported to the credit bureaus? 

In today’s market most homes will be worth more than their outstanding loan balance unless they are VERY recent purchases with little to no money down.

Follow the step for the deposit-even if it is to send a registered letter to their last known address stating that the deposit was used for outstanding rent and whatever damages or cleaning was needed (itemize it). 

Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

Also, some helocs will offer Interest Only payments, some that go above 90% LTV may ask for 1% of the outstanding balance or 1.5% of the outstanding balance.

From the Great Recession to Q1 2022 it was easy to find RE that seemed very likely to produce outstanding return. 

Maybe seller holds a 2nd, maybe partner with someone, maybe get some F&F (friends and family) money, maybe offer a higher rate for the 2.5 years the 2nd is outstanding. 

@Benjamin CarverThat was an OUTSTANDING post.

You also mentioned an unpaid water bill, so be sure to deduct any outstanding balance from that bill as well. 

Keeping a 2.99% rate sounds great, but it may be costing you thousands of dollars if you are in the double digits with your other outstanding debts.