Investment Info:Single-family residence buy & hold investment.

Mostly it was when I wanted to fund an investment.

I told him I didn't want to make my tenants pay more money but he insisted on it.

Your purchase price of 215k would be a bit higher which could cause you to lose money on the property.We have flipped a bunch and notice that even as a broker trying to be conservative in our ARV estimate, can still sometimes be too high by 5% (worst case 10%) in some cases. 

Quote from @Patrick Wood: I am new to real estate investing. 

Even if I do not recover the money, I do want to have them reported to the credit bureaus etc. so that they do not do this to another unsuspecting landlord in the future.

Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.You need to get a firm grasp on two things: the ways to make money with real estate, and how to find deals that match your goals.P.S.

therefore the OP will have a foreclosure on his/his LLC credit record, which would inhibit them from borrowing money for maybe 5 years.

I’m invested. 

If there's a clause that allows you to back out due to new findings or due diligence conditions, you might be able to retrieve your earnest money deposit.