This along with a multitude of other issues ate through every bit of reserves we had before we made much of a dent in these rehabs.

At last check, the California Fair Plan has nearly $500B in insured property and $700M in reserves.

Something to look into in your case.I would recommend having the seller send message to all people already booked with your new listing & have him contact AirBNB or VRBO to cancel those reservations due to a sale.

They offer a $10K repair fund to fix damages in addition to SD plus warranty for appliance repair etc.I have no say in whom they choose to move in, whether there are animals, limit on # of occupants etc. they reserve right to inspect property so i have no idea if they can tell me to remodel, paint etc.does this make sense i have a vacancy coming up in October (bad rental timing).

Reserves!

Since this program doesn't require reserves, your cash can go further.Let's connect. 

My advice on sub to is as follows1- COMPLETELY understand the process, implications, liabilities, and possible outcomes before engaging or attempting to engage in a sub to transaction2- Complete disclosure going so far as making sure the other part understands the transaction and possible consequences3- Utilization of an attorney experienced in subject to transactions for setup in such a way that provides some protections in case of default or in case the note is called4- Have a backup plan in case the note is called5 - only use for property that has a TRUE positive cash flow unless the buyer has substantial reserves I myself have purchased 8 properties subject to, but 5 of those were commercial properties which often have notes where a subject to is allowable.  

But, you can go up to 65% loan to value with no reserves, or up to 80% loan to value if you have 12 months payments already in the bank (12 months reserves_.

In a simple way: you wouldn't go to the store and buy $100 in cash for $150.

I would venture to say very few landlords correctly hold their deposits based on local landlord/tenant law but as long as the money doesn't walk away and is not wrongly withheld from tenants its highly unlikely wrongfully storing the funds will become problematic.