They paid the first month's rent, plus a security deposit which is saved in my business checking account which they will get back as long as the apartment is left in serviceable condition.

They dont want their names on the title in 2nd position behind the hard money lender (despite me telling them that will secure their loan), they just want to loan the money to me personally at 12% with a promissory note. 

So if I start with a duplex or a quad as my first property my goal would be to have a net cash flow of $500I intend to use the "BRRRR" (Buy, Rehab, Rent, Refinance, Repeat) method but have never used this strategy before so I still have a lot to learn If I only close on two deals starting in 2019 then I will need to find another 20 deals in the remaining four years (2020-2024) that also meet this criteriaBeyond 2024 I plan to continue to scale even more over the next 3-5 years with an end goal of financial independence by ~2030 (meaning that I will not work a "day job" but will passively manage my real estate portfolio)Biggest hurdle: I'm going to be living outside of the US for the next 3 years and will (likely) not be able to physically see any properties that I plan to purchase.

But you might be able to secure other funding to make this deal happen.Business/personal unsecured line of credit.

-properties with deeded parking can be rent on spothero for additional incomeI found (as the everyone else knows, no secret) you can get higher rental rates with more active leasing methods.

Also, maximize the security deposit. 

What are my option here, I do not understand why $1400 was taking out of our security deposit for no reason.

I would try to secure private financing or get a partner, otherwise.

Talk to a securities attorney.

@Andy Mirza frankly I did not trust the party that put me on title so I secured an attorney to navigate the issue and act in my best interest.