I did the right thing by asking for the security deposit and first month of rent before handing the keys.For the next two months, she has been a nightmare.

Do you currently have enough funds to pay first month’s rent and a security deposit?

I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

I suspect all security deposit need to go to the owner or a new PM..

Glad we're secured, but nothing in rei is passive.

I am currently waiting on a rather large legal settlement to hopefully hurry up and get him his $16,000 or if we can find someone to go ahead and pay him off early (no prepayment penalty), which would be hopefully paid off sooner than later as well in exchange for a secured lien on the property plus repayment of the $16,000 plus interest short term.

The agreement is contingent upon the buyer securing financing which I was not able to do and have provided a denial letter.The seller is requesting money for damages because the appraisal came in at the purchase price but needed a heat installed in the kitchen which the seller agreed to install (Not in writing).

If it does you have zero asset/income, a much larger debt secured by your personal residence, at just the time you probably also lose your job due to economic conditions, and all those nice folks teaching you about sno ball, infinity, you’re your own bank, etc., will be long gone.  

It's impressive that you secured a deal like this with no renovations and turned it around the same day.

Many laundromats take card payments these days, which is very helpful in verifying revenue.Look at the lease terms – long-term leases with reasonable rent increases are important for keeping costs predictable, and can also be important for securing financing.Also, check out the equipment and figure out what repairs or upgrades might be needed in the near future.