If not and you wrote them the check, then most likely the $ is gone and suing for that money will cost you more than $1000 unfortunately.So cancel the agreement and request the funds

I spend money on postcards, distressed lists and a website.

Hope you don't put down large earnest money deposits... these guys will make sure you lose them! 

I bought a property that was newly rehabbed without having to put in the rehab money.

U guys let it get this far over 3400.00 its your fault.. even if you did something wrong.. who is going to go to arbitration for such a small amount of money..

Will this be a good investment time and money wise?

However, there are other loans designed for fixer uppers referred to us hard money loans, bridge loans, or fix and flip loans but whatever you want to call them they're essentially short term, interest only loans with no prepayment penalties designed to finance a higher % of your purchase price and typically all of your renovations not to exceed a certain % of the ARV (typically 75% max). 

SLS and Lakeview manage troubled loans. 

So the money partner increases their new worth quickly as the property forces equity usually through repairs.

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.