Because your paying down the principal owed to your seller, any rental spread from the buyer and seller agreement is still yours to keep and the previous buyer forfeited that when they left the deal.

If there is reasonable cash flow and she is willing to forfeit any equity or you will not be in it too much, I would say buy and hold.

So I've gathered the lists and scrubbed the list to only include 2013 and 2014 delinquent.  2012 delinquents have already "forfeited" the property. 

In the event that Property does not sell within agreed terms, our company forfeits its profit and liquidates the property to payout investor's interest.I hope this clears up your questions.

It is because the whole world has access to online tax deed auctions and often the realtaxdeed.com website will show properties as, "SOLD" or "Certificate Holder Win" ..but something falls through where either the certificate holder win is not local and forfeits the win or out of state bidder wins the tax deed auction and walks away or simply something goes wrong and the transaction is not completed.

So if you're like many wholesalers that literally don't have the cash to close you'll end up with a lot of forfeited earnest money.

The way I understand it you would just forfeit your earnest.

Unless you plan on forfeiting a lot of EMDs because you couldn't "close", even $10 isn't all that much money to lose.If you are debating between the $1 wholesaler EMD verse the $5-10,000 EMDs that a lot of house buyers put down, then my guess is most wholesalers put down as little as possible, while most sellers want as much as possible.

Can the owner leave some money in escrow after closing with a deadline to get the tenants out or forfeit the deposit? 

For me, lower leveraging and a little liquidity provide more safety even though I forfeit a little more earning potential.