Erin Bryant or anyone entering into a contract should request proof of proper licensing and insurance prior to signing a contract and/or providing a deposit.

When you apply they will ask for your bank statements and you will have to explain any large, non-wage, deposits.  

Ok,Thanks Wayne,...That also applies if I put a deposit toward purchase from day 1?

It's a deposit that indicates to the seller the buyer is serious.

By checking quarterly any damage can be seen, repaired and billed to tenant without using security deposit. 

You bought a property for $100k (including closing cost) with $25k deposit.

Using a system with numbers is now defendable if there are complaints.1.On time for appointment2.BROUGHT NECESSARY ITEMS: Identification, application information, references, application fee, holding deposit...3.Filled out application completely and truthfully4.Able to verify all of the necessary information5.Able to pay full amount of rent and deposit6.Sufficient monthly income of 3 times the rental amount7.Verifiable income and employment8.Stable income or employment for a minimum of _____ months9.Financial obligation of no more than _____% of income10.Satisfactory credit history (no bankruptcy)11.Provided credit references12.At current address for a minimum of ______months13.Gave proper notice to current landlord14.Gave proper notice to previous landlord15.No prior evictions16.No problems with previous landlords17.Deposit fully returned (none withheld for damages)18.No complaints or police reports regarding disturbing the peace, etc.19.No significant violations of a previous rental agreement20.No pets or is willing to sign a pet agreement and meets additional pet criteria21.Non-smokers22.Has a Delinquency Rate less than 45% based on Credit Score Analysis performed by Tenant Background Search.23.Has a credit grade of B or credit score of 600 or higher per Tenant Background Search.

keep your current mortgage at the lower rate and get an equity line for the deposit on the new place, and only that money borrowed will be at a higher rate

Are you leaving any deposits with the seller?

It is a large initial investment, per what I was told, between 5 and 25k which would be a "deposit" of sorts.