And the fact that we’ve recently seen several posts from new construction buyers asking if that should walk away and forfeit earnest money shows the general psyche / emotional state of the market.

He can do a resrtiction if he wants, but it seems he is looking for someone either really bullish about the property's long term rental potential or wants a 'turn key" VRBO and is willing to pay a premium to do so and forfeit profits for 2 years to do so. 

This was just discussed in another post yesterday and had a lot of responses.50% deposit at the time of booking.If they cancel >30 days before check-in, I refund everything.15 - 30 days before check-in, they forfeit the deposit.Full amount due 14 days before check-in.Cancellations <15 days before check-in results in forfeiture of all funds unless we're able to book someone else for the same time/rate. 

After that it is forfeited to the county.

As a property owner a forfeited/dissolved LLC often cannot convey out... it would need to reinstate.

If they fail to sign the lease and take over by the aforementioned date, they forfeit the Holding Deposit and I market the property to another renter.

The earnest money would only be forfeited after signing the docusign contract. 

If you don't find someone to move in until October 15th, then you deduct a prorated rent for October 1 - 15 and refund the remainder.Personally, my agreement says they forfeit the entire Holding Deposit if they back out.

We got it under contract for 110k and the current value is 150k as is and it’s rent ready.I’m curious to know if we should just walk away and forfeit the EMD or maybe try to find another end buyer.

It is NEVER a defense to say you told them, or of course they knew why they weren't getting it, or a lease clause said they forfeited it for early termination.