The earnest money deposit is yours, You can get it back if you back out of the deal within your inspection period or if the deal falls through because of financing, but if your doing a conventional loan make sure you have an Appraisal Contingency so if the property don't appraise you wont be obligated to come up with the difference.  3.No, its your money and its becomes part of the funds you bring to the table when its time to close the deal.4.

Throwing out tenants property without following proper procedures can come back to bite you when the tenant claims there was a priceless diamond necklace in the end table you carelessly threw away.

I have an offer on the table for $1,100,000 to purchase it and he was prepared to accept the offer but then he came back and said he would have to pay too much in capital taxes to make it worth selling. 

Sellers realtor says they paid way too much in 2008 and needed to bring cash to the table at closing.

Credit union is the best source of financing if you can secure it.She's asking you for a business plan basicly: monthly projection of your payments received from rent and your payments on bills like taxes, insurances, property manager etc.Let's say, you want to buy a house for $70K, update it for $30K and you think your rent will be $2K/month.Then you make a payment plan for each month what is going to be paid: January+July - taxes $1020 each; March - insurance $870, every month water/sewer $50 (if you don't plan on Tenants to pay)When you make it an Excel table, there will be each month left cash flow, which you then add with mortgage payments.That's one of the main projected financials: your cash flow.Income projected as an income&loss statement: $24,000 income from rent                   $2040 - taxes                   $870 - insurance                   $600 - water/sewer                    $2400 - PM                     $4,000 - interest on mortgage- depreciation - maintenance- other expensesWhen you talk to the bank,  they should see positive numbers, not just that you know you'll pay.

However I would like to take some risk off the table as the housing prices have moved beyond their all time high, but I don't want to pay the tax man yet.

Find a good wholesaler in your area and offer to work for knowledge or a cut of deals you bring to the table. 

From the little experience that I have, they'll ask you a few questions crunch some numbers and will be able to give you the info you need. i think they may also give you a pre-approval letter if you have a deal on the table.

Obviously, I bring the realtor chops to the table. 

I am not a wholesaler nor have I ever done any wholesale deals on either side of the table, but I have purchased off market.