Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Pet deposit is $250.

My HOA pays for everything related to the structure and my cash flow is $200 after HOA dues so I only tend to keep 2 months of rent in reserves per unit + the tenant deposit

I get it with the builders.. we saw that big time in the GFC however the deals I saw was them walking away from substantial EM deposits deep into the 6 figure range.. we did well picking up some lots from lot developers who had this happen to them..

Each area has its own rules on how it works, but basically, you buy the house, pay a deposit and agree to rehab the house within a certain amount of time.

Parents had all of the money available as they had a good enough income to pay deposit, 1st month, and move in ASAP. 

You have decent cash flow that you'll continue to accumulate, which you could put toward a deposit later for another property. 

You can get some estimates from contractors for what they charge for big ticket items like to renovate a bathroom, renovate a kitchen, replace the furnace, replace the roof, etc.All wholesale deals should have free and clear title and you should be able to see the sales agreement before submitting the earnest money deposit.

I would be surprised if there weren't notices given to both the defaulting End Buyer (You're in default, you must close by X date or we're forfeiting your deposit) as well as the escrow agent (Buyer defaulted, see contract Earnest Money paragraph regarding release) prior to that actually occurring.

Offer to give them their full deposit in cash on move-out day, if they leave the place clean and empty, etc.