Someone should have done a better job of inspecting prior to returning the security deposit. 

Are the investments you offer registered with the SEC or Virginia Division of Securities and Retail Franchising?

I’m the meantime I was able to find a new tenant who has paid the security deposit, first month rent, and has scheduled utilities to be transferred to their name but no lease has been signed yet.

Also don't forget to get an extra bank account for security deposits and set aside money for repairs.

I've purchased the property, ALL CASH, and have secured funding for the build.

Efficient negotiations secured the property for $200,000 on favorable terms.

From what I see Rently seems the most secure due to the credit card auth.

You will likely get two different answers to your question, and it ultimately stems from your usage of the word "foreclosure".The word has technical definitions, and as JD pointed out, in a sub2 deal you don't have a security instrument that authorizes you to foreclose on the property. 

Additionally, maintaining a strong credit score and keeping your debt-to-income ratio in check will make it easier to secure financing for future properties.

You will also need this info for contact information, etc.Request in your offer a letter signed by both the seller and tenant agreeing on the current value of the security deposit.