My goal is to develop/build the home myself but my problem is I don't have any real estate experience whatsoever. 

Things will go wrong in real estate; some folks wash out when they do, and other people grit their teeth and work through the problem--and become stronger and more experienced as a result.  

I'm not understanding the dilemma here - the tenant actions did not involve you whatsoever, so I don't understand the feeling of wanting to give the security deposit back. 

As easy as this sounds, it's not simple and usually like pulling teeth.

I will provide port-a-potties and distribute 5-gallon water jugs to all the tenants to use for teeth brushing, washing, etc.

In the final analysis, there's only one thing that makes any difference whatsoever: achieving success.

You'll be hard pressed in my opinion to find someone that will let you cut your teeth on their money.

Also, if you are a new wholesaler or Flipper trying to form an LLC and want to get funding, it is very wise NOT to have anything whether it be "Business Purpose" or an NAICS code that has any relation to Real Estate whatsoever.

Yes(Assuming free market reform, no government involvement whatsoever)I take my views from the most honest man in congress, a defender of the constitution, Ron Paul, who also happens to be a doctor himself.Please watch and behold common sense:http://www.youtube.com/watch?

And it's hard to blame them when you see what $300,000 buys you just over the border: A 3 bedroom, 2 bath house with decent schools and NO crime whatsoever.