Tried both, damage deposit works better. 

I believe that when they do move out that they will use the bond as the last months rent and I will have nothing to fall back on if there are damages.

Can the 3 weeks in lost rent be taken out of the old tenant's security deposit or would we need to seek for those damages separately in court?

We are having our roof replaced due to storm damage, however, when the shingles were removed another storm came through the area and caused a significant amount of water damage inside the house.

The inspection report came back showing signs of old termite damage.

If you're concerned about issues, make sure to have a camera pointed at the driveway, smartlock that logs all the comings and goings, noise monitor inside and you can even place one in the backyard, and lastly get damage rental insurance on each booking that the guest pays for by baking the charge into the nightly rate.

If the one document you got showed a deposit of $1700, then that is what she's owed (minus any cleaning costs or damage that occurred after you bought it (ie you know she did it). 

I would just suggest you make sure you fully understand that process before you dive into it - because you can lose a lot of money fast if you don’t know all the ins and outs.Likewise, rehabbing isn’t always straight forward… like who will do the work, permits, contractors, unknown damage you may not have accounted for - especially in  a foreclosure where there usually isn’t the ability to inspect the property.We’ve done several flips we won at auction, and lost plenty of them in the bidding.  

Last doesn't cover damage.

Tying up a desperate and in arrears homeowner with a purchase contract you can not perform on and in which a sale will happen ONLY if you are successful flipping the property for a higher price can cause extensive damage to the homeowners finances, credit and personal life.