UNLESS of course you have contracted to make some or all of your EMD subject to forfeit. 

Do I have to get insurance for my company also or all the accidents, burglary etc are covered by general contractor's insurance?

Even now I still get the fear bug come upon me thinking of my next deal or all the "what ifs".

So, they were really collecting only 1/2 the rent they claimed they were collecting + even that tenat is vacating+ there is no lease - all oral and month to month.A lot of lessons learned here (at the cost of couple of thousand) - never trust anything the current owner says unless you verify it.Well on with the property hunting again.AK

Is it crappy or all new construction?

Are the meet ups informational/ presentations or all networking ?

Most likely you will need to provide the tenant with a full and specific statement of the basis for retention of any or all of the deposit by a specific date.If you can get all of the work done prior to that date and have receipts, great.

If you read the PA Landlord Tenant law, they can withhold part or all of the rent under the Implied Warranty of Habitability clause ... but only if they notify you in writing. 

If you can add enough value you may be able to get most or all of your up front costs.I'm with your wife.

you are incorrect when you say you have no lease. acceptance of rent constitutes a legally binding, ORAL, month to month lease. you cannot give 2 weeks notice. you must gove 30 days notice, and one full rental month. that means to raise rent on april 1, you must give notice before feb 28. this is so they have one full months notice. if your state laws said 60 days, it would be two full months. download your local tenant laws before you get yourself in trouble