Thanks, so it sounds like the steps to send the seller are:1) Letter of Intent (LOI)2) Earnest deposit based on a 21-days inspection & financial contingencies3) Coordinate time with the seller to have an inspection & general contractor (GC) walkthrough4) Calculate the amount of repairs/fixes required to see if it makes sense5) Ask the seller for lease docs (estoppels) in addition to rent rolls, maintenance, and all expenses6) See if the bank approves the purchase7) Purchase, send the tenants a document that says I'm the new owner, and start rehabDoes that sound right?

Mitigate with deposits and enforceable lease clauses. 

He's having a post symposium meet up at Tuscany Suites & Casino at Marilyn's Cafe at 7am tomorrow.

The security deposit will be used to repair any such damages or any other obligation against said security deposit including but not limited, to unpaid rent." 

The previous owner did not require deposits.

I use a combination of Baselane for banking, bookkeeping and collecting rents and security deposits.

We charge a non-refundable deposit and then a monthly fee.

Were any of the repairs something that should have been deducted from the previous tenants security deposit? 

Any suggestions on how to legally put Damage Deposits into a CD to gain interest? 

Otherwise, it may be worth losing the security deposit if the house is in really bad condition.