Due diligence we built systems and network to assist us to get it done faster along with networking with other experienced investors regularly. 

It keeps things streamlined, especially with long-term tenants.As for the security deposit, you are right to revisit that after 10 years.

Require written terms before appraisal, wire funds through escrow, and confirm they secure via a proper note and recorded mortgage or deed of trust.

If a prospective tenant can't come up with security, first, and usually last months rent they're not getting the keys to my property. 

I wanted to invest in my retirement and my family's financial security.

They’re not just working harder; they’re working smarter with the S-Corporation tax strategy.But before we dive in, let’s clear one thing up:*This only works for active income.That means flipping, wholesaling, commissions, construction, or property management income.It does not apply to rental properties or long-term passive investments — and putting rentals inside an S-Corp is one of the worst tax mistakes you can make.Let’s break it all down:Step 1: Why the S-Corp Exists (and Who It’s For)An S-Corporation (S-Corp) is not a special type of company; it’s a tax election.You can form an LLC, then elect for it to be taxed as an S-Corp.It’s perfect for people earning active income — anything where you work for the money:-Flipping houses-Wholesaling deals-Real estate commissions-Property management fees-Contracting or constructionHere’s why:A sole proprietor or regular LLC pays self-employment tax (15.3%) on all net income.An S-Corp lets you split your income between:a “reasonable salary” (subject to payroll tax)and “distributions” (not subject to self-employment tax).That simple shift can easily save five figures a year once your business income hits the six-figure mark.Step 2: How the Wealthy Use It to Build Explosive WealthHere’s the play wealthy entrepreneurs use again and again:They pay themselves smart, not just more.Set a reasonable salary — what the IRS expects for your role — and take the rest as distributions to cut payroll taxes.They reinvest the savings.The extra cash that would’ve gone to taxes gets redeployed into more flips, marketing, or acquisitions — compounding their growth.They hire strategically.Many bring family members into legitimate roles, shifting income and creating generational wealth legally.They layer entities.Example:S-Corp runs the active business (flipping / wholesaling / management).LLCs hold the long-term rentals.That separation protects liability and keeps tax treatment clean.Why S-Corps Don’t Work for Rental PropertiesHere’s where many investors go wrong — using an S-Corp to hold rentals.

On top of that, I started having people break in to squat at night, which pushed me to secure tenants quickly.I landed at about 12.5% below my projected rents.

@Felicia Richardson - Do you keep the security deposit funds in the same account at which you also receive rental payments?

I know that you know that a wave of foreclosures is not a realistic scenario, because it would require negative home equity on a large scale - otherwise, if you can't make the payments anymore it's just a regular sale.

Some people like to have a separate bank account for holding security deposits.