I would collect a non-refundable option deposit from them up front, create a cash flow every month and if the tenant/buyer exercised their option down the road got paid again. 

(DO Ask for receipts if it's for material deposits.)Share competing bid information and "bid shop".Encourage bidders to get into a bidding war.Try to low-ball contractors.....they will try to cut corners or make it up with change orders a lot of times.And finally, DON'T assume that "All Contractors are Crooks" or that "All Contractors Will Rip You Off".  

@Michael Chua you saved $500 every mont..so now you have a down deposit for any property?

My thought was to pull everything I had together to make the proof of funds letter and then work on financing, but I'd have to close once I get past DD, I'd lose my deposit.

You make $ with non-refundable deposit up front and the spread between the rents.S California sounds like an expensive market to me.  

The seller needs to either do the make ready or forfeit the security deposit.

Also, the seller either needs to do make ready or forfeit the deposit to you.I would require the tenant to qualify and sign a lease even if it is for a few days.

If they break the lease, is it legal to keep the deposit in Oregon?

I have done a lot of researching and talking to people on this matter, but I am still not 100% sure, so here it goes.I am currently on a month-to-month lease where i have paid my last months rent along with a security deposit.

Hire a contractor to make repairs in the summer using the security deposits.