It also states that any security deposit refunds owed will be made payable to all parties on the lease agreement.One tenant has stopped contacting the roommates and us, and we are not sure they are planning to return.

Deposit for another place + $ to actually pack up and move his stuff.

We offer early termination for basically all leases, which is 1 month plus the deposit if there's no damages. 

Furthermore, what are the regulations regarding security deposit?

1) Do you put the extra rent and deposit in escrow?

Around here a lot of landlords offer section 8 tenants $300 cash when they move in with $0 security deposit.

It sounds like he's talking about backing out via contingencies on the contract like inspection or financing contingencies, where you can back out of the contract and get your earnest deposit back.

Sorry to hear this.I would always say that "There is nothing wrong with any property as long as the price is right".Granted, some are not salvageable and the deal doesn't make sense even if the seller paid to me to take it lolOver the past 10 years I have witnessed many investors trying to do the same thing as you.Purchase from afar without buying turnkey and trying to do it themselves.This has been popular especially the last few years.Not many succeed unfortunately or they don't succeed in my eyes as they are into deals for much more than what they should be.There is a big trend going on where folks are made to "feel involved" with the purchase, rehab and property management process.The properties look great and off-course they do as rehabs cost $40,000 - $50,000.It doesn't sound like a lot of money for folks from CA and NY but for our local standards it is and IMO kills the cashflow and is unnecessary overcapitalization.Each to their own I guess.Just had a call the other week with a fellow from CA that bought a few turd properties from a local scam artist and is flying to town to try and rehab them himself.Another fella I managed to save even tho he lost his deposit of $1,000 as the seller (Another known scam artist) made him commit to the deal without allowing an inspection or even a walkthrough...If that isn't a red flag then I don't know what is 🤷‍♂️Hat's off to you for flying into to town to see the property for yourself.Wishing you much success

Find a local bank and build a relationship...banks make money on deposit funds, your business seems to have a pretty decent deposit base.

With 48 hours left to wire the earnest money deposit.