If your lease doesn't address this specifically, don't think you can keep their entire deposit.Put the rental back on the market.

Reading comments and your specific feedback, it looks like i should have gone for a bigger investment property or properties with DP instead of all cash.

@Manuel Mungaray What's the question specifically? 

Hi Everyone,I'm currently on the lookout for reliable wholesalers that service the Southern California region, specifically Los Angeles County, Orange County, Riverside County, and San Bernardino County.

What would matter is that you specifically did NOT have the local authority approve it. 

I was able to get a good deal on the house I was interested in due to this fact but it’s a half done flip/reno so there’s a lot of work halfway started throughout the house. 2 areas in particular I’m unsure of what to do with is the walls and attic, any suggestions or ideas of how you would be finish would be greatly appreciated (adding links to specific products are a bonus lol)!

I do spend time there @Chris Watson, but I wrote a specific algorithm a years ago the scrubs the internet for data I input.

Feel free to DM me and I can get you more specific data.

Is there a specific form that I need to fill it out and get it registered?

Refinished and adding more livable space could be a good angle- but we've had a few of these scenarios lately- specifically with modulars.