Many tax sales require deposit up front and payment day of sale or soon thereafter. 

The rehab funds are for completed work only so your parents would need to front the contractor like 15k let's say to get started and then they get their deposit back at the end of the project because they added 15k to the rehab funds with their deposit so 15k will be left over in the escrow account when job is done. 

Im tired of letting tenants bail out with unpaid rent and damages that exceed well past the deposit. 

The Brokerage advises agents NOT to handle deposits, but have buyers send it directly to the closing company (e.g., closing attorney or seller attorney).  

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

Also check how long you have to notify the tenant that they won't be getting their full deposit back and how long you have to return the balance.

Hopefully you kept the deposit to cover the costs as that is likely all you'll see.

In the competitive world of real estate investing, finding tough markets with great upside gives you an instant edge over the competition.

The line of credit would give full access to your equity instantly and you would only pay simple interest on the amount borrowed at any given time.

If there is a fee for breaking the lease, then add that to the invoice you send him as part of 'returning' the deposit.