The security deposit has nothing to do with her claim that your negligence caused her son harm.

At the end of the day, I want to do nothing that's unethical and nothing that's harmful to the sellers.  

No harm no foul.

Bill, Flipping an option IS brokering from the view of substance over form and I agree with you completely.

Those outside of our borders that want to inflict harm are a great threat to security.Borders first because this helps lessen any potential act of terrorism.

If during the refusing to leave they have been threatened with bodily harm an order of protection can be issued, talk to the victim advocate if that is the case. 

Like you said, everyone does this with transfers of rentals to LLCs and trusts for liability protection and other reasons, so lenders are going to have a hard time claiming harm to their business when this happens constantly without enforcement. 

Quote from @Brennan Harms: This is an issue with your agent.

I don’t think he is negitive as much as he believes (much like me) that the Fed etc. helps the wealthy and harms the working or middle class.  

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.