Thank youI see this post went dormant without your question being answered.

There is always some period of time after the funds have been repatriated to your account when they are dormant before they are redeployed.

Through a 1031 of course.So are you suggesting to get a HELOC to buy other properties vs letting the equity sit dormant? 

Ironically after a five-year dormant period, I am presently also looking for referrals in Dayton.

Where I am, banks also charge for bank accounts and if you don't do something with the money every 6 months, the account becomes dormant....hence I put everything in a single account.

Now today I discovered that they charged me a $10 fee for a dormant account.My questions are, Do the security deposits, by law, need to be in an interest-bearing account?

You will want to find a bank that really knows how to do landlord-tenant accounts properly; from recent experience, I can tell you that TD Bank is not the bank to use for this (they have 1099'd interest to me rather than the tenant and nobody there knew how to fix that properly, and they also allow the account to go dormant when there is no activity and your security deposit accounts will probably be inactive most of the time).  

I will say that for someone who is looking to grow their portfolio over the coming 10+ years, I tend to take the view that the equity in my rentals is relatively dormant capital and if I can deploy it and a) not inhibit appreciation and b) generate even nominal incremental additional cash flow then using the HELOC to secure additional properties makes a lot of sense.  

They also have an option to join under a referral branch of the company where you still remain licensed but can make your license dormant temporarily if you are going through a period of time where you are focusing on investing more than selling and would rather not pay the high fees of the MLS. 

I would think right now that would equal a few 10 unit apartments, or maybe a couple 20-30 unit apartment buildings, which will limit the amount of work we need to do to manage, and limit the amount of dormant money in vacancies and evictions.