Off of the purchase contract, I would verify proof of funds, ask for prequalification letter from a lender if buyer is receiving a loan, with a good faith deposit.

They already have 1.5 months rent as security deposit. 

Regarding the $795 "deposit"... it's now $895, it went up "just last week", but i get a sense that, as @Dev Horn stated, it's more to keep the yahoo's at bay.

Asking specifically when it comes to situations where tenants would rather have options similar to deposit cash or check at some bank.

It always helps if you have your deposits at the bank you are trying to get a loan from.

You must properly treat the LLC / Rental like a business.Rents get deposited into the LLC Account.Expenses get paid out of the LLC Account.You can make contributions / distributions to / from the LLC Account.Try not to receive rents or pay for expenses directly from your personal account.Best of luck

I got a pre-approval and sent in 7k as a due diligence deposit (before I learned to NEVER do that).

I'll be making two changes on future leases as a result of this - increasing security deposits; and making rent due by the 1st (current grace period is through the 5th).http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf...

Would be really grateful for guidance and thoughts on how to be productive between picking up and depositing rents.

Deposit is non refundable (unless I as seller  cannot close) If you are really a "Cash buyer" that having the cash to put down for a decent size deposit shouldn't be a problem.