How do we protect ourselves from a tenant causing us significant damage in excess of the deposit amount? 

there are a few options for borrowing earnest money when you need funds to get a property under contract:Gator Lenders - This is a company that specifically lends money for earnest money deposits (EMD).

I would give him 24 hour notices for doing showings, halfway through the month he confirmed that he would be out by the last day of the month.I signed on his replacement, got the security deposit and was good to go.

Virginia doesn’t have many requirements around a security deposit: doesn’t require an interest bearing account or for me to return interest if it earns any.

I also use PayPal and Venmo.Some just deposit directly into my business account.I make it as easy as possible for my tenants to pay me.

Sub to is one arrow but certainly not one you can count on.. the idea of a bank or CU or portfolio lender lending you on your first fix and flip will be very tough to find unless you have subtantial banking relationships with them ( read deposits) .HML lenders exit because they are basically the only ones that will do this for new or newer fix and flippers.  

Cost TrackerLot Purchase Price 20% - 15%Architect & Engineering Plans RenderingSurvey 1 (Stake Corners & Elevation Cert)Surveyor (Final Elevation Cert & Final Survey)County Permit Municipality Utilities District Portable ToiletFoundationSilt Fence Site Work (tree removal / 8in Dirt Scrape)Concrete SlabFramingLumberEngineering Wood Products (Trusses)Accessories & LumberFraming Labor $2.5 per sqftPlumbingPlumbing TurnkeySinksToiletsFaucets & Shower TrimElectricalElectricalHVACHvacInterior Windows & Material Back DoorFront DoorSiding, Sheathing & Cornice MaterialSiding, Cornice, Doors, Window LaborRoofRoof Deck MaterialRoof Deck LaborStanding Seam Metal Roof (optional)InsulationInsulationDrywallDrywallFirewallHang, Tape, Float & Texture LaborDrywall Touch Up LaborPaintExterior PaintInterior PaintExtra Cost (Caulk & Paint Upgrade)CarpentryDoor Handles CabinetsInterior DoorsBaseboards & Shelving (closets, utilities & Pantry)Carpentry LaborCounter TopsCounter TopsMirrors MirrorsGarageGarage Door & OpenerDrivewayDriveway Flat Work (AC Pad, Walkways, Steps, Backyard Steps)TilingTile MaterialTile LaborLVPLVP MaterialLVP LaborRailingRailingLandscapingLandscape Final gradeSODFlower BedDumpsterDumpsterApplianceseDish WasherStoveMicrowaveMiscMail BoxFinal CleaningHouse Plan PrintsWater & Electric During buildRefunds / DepositsRefundable Deposit

I do not have a security deposit from them unfortunately. 

You also need to be prepared to give them your deposit business a as well.

I am just a person on an internet message board, but have known enough attorneys and seen second and third hand enough lawsuits to know you are getting dragged in no matter what.Just a few things to think about before you start spending money to transfer, just to learn that it will cost you a lot more to have things like commercial insurance, commercial mortgage, business utility account (not more expensive, but typically require a large deposit to remain on account), etc.