Tenant decides to move or can't get refinancing in the time period, owner would evict them, keep the deposit and repeat the process. 

Unfortunately I do not get paid for this work, I can not charge it against their security deposit. 

Earnest money deposit is $2k to be sent to a title company seller identified

I guess I can raise the safety deposit to mitigate some of that.

Do you think I should back out and get my good faith deposit back and if so (I am 90% wanting out), do I have any legal recourse? 

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Have him say you’re sorry if you offended the seller and say you agree to waive all your contingencies and would like to proceed including putting your earnest deposit at risk.Otherwise call it a win you escaped the deal at no cost. 

This is just a simple form that states "Deposit is $X" and "Monthly Rent is $X" and "There is no outstanding balance owed".

The reason being is, say you put down a 10% deposit for a pre sale townhome.

At what point is the security deposit forfeited?