A Real Estate agent made an offer for his client and BlueGate was who wrote the approval letter for the Buyer. 

Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

Long term hold, with buyer planning on carrying existing financing to term without the ability to quickly cure default — terrible strategy with huge risk for both parties.   

I’ve sent the seller a demand letter, but instead of honoring the contract, they offered me money to walk away.

Section 8 would tend to carry higher repair and as a result, additional vacancy.OP’s definition of cash flow is rent minus piti.  

And you can't legally dictate how much they carry for personal belongings. 

The ADA defines "readily achievable" as “easily accomplishable and able to be carried out without much difficulty or expense.”Without much difficulty or expense is substantially different for a small mom and pop restaurant than it is for Google or TJ Max.

Follow the step for the deposit-even if it is to send a registered letter to their last known address stating that the deposit was used for outstanding rent and whatever damages or cleaning was needed (itemize it). 

If it's on your credit, you are on the hook for it.However, it shouldn't effect the loan process too much, a simple Letter Of Explanation should be able to get the job done with the correct investor. 

Is it normal to pay anything upfront besides a down payment on Private Money Lender financing deal
Does this look legitimate to you guys https://drive.google.com/file/d/1WXAqllCuZVMjkv6HjqLmv-gw3bmwPqr2/view?usp=driv...