We have not been able to secure financing and had conversations about it.

If you're living in it now, you'll probably be required to have a signed lease in place as well as proof that first month's rent/security deposit were collected in order to get a DSCR loan (they're business purpose loans and don't allow owner occupancy).

Quote from @Jeff Adolphe: @Kevin Collins How long does it typically take you to secure a house with REI?

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

I'm trying to get financing lined up before I find a deal. I want to do a seller financed deal that allows me to put less down, but I still have to come out of pocket the rest of the down payment and construction cost...

I know I need to hold the security deposit in an escrow account.  

If these things weren't disclosed that could be an issue.Did you work with a licensed insurance agent to secure coverage?  

What about the security deposit? 

I guess my problem with being too up front about seeing their place is that I don't feel like I'm in a position of power right now to decline people since it's hard enough to find people that I want to even get to that point in the application process in the first place, but I have to snap out of that mindset and have to instead come from a place where I make them believe that I have a lot of other applicants and that it's my standard policy and it's something they'll have to go through if they want my place.....ESPECIALLY if I decide to only take 1st & security from them rather than 1st/last/security.Thanks again!

You can always charge an air and surface scrubbing fee from their security deposit after they've moved out.