I am fortunate to have had good financial training early, and I won't dispute that it helps a lot to have money to make money.  

They're working on a resolution.

By the way I am not concluding anything about you , because I don't know enough about you.I am also definitely not encouraging the OP to litigate and enter in to disputes , but merely stating that , we need more information to come to a conclusion . 

You generally cannot get a mortgage with any disputes showing on your credit report.So you will have to 100% resolve the disputes - either by calling and saying "I no longer wish to dispute this" or by actually "winning" the dispute.Otherwise that dispute will just sit on your credit report forever. 

I am with you, Tom.I do think a court order of possession (back to the landlord) would be different than a domestic dispute where one tenant is to stay and another is to leave.In the situation of possession, the court has ordered the property reverts back to the landlord, meaning the tenant is now trespassing.It may be an issue of which issues the local police will involve themselves.

This was for less than $3k in dispute. 

Buyerwill be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of thisAgreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any feeforcancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation;(3) Appraisal fees and charges paid in advance to mortgage lender(s).Line 707 the selling agent says my realtor was supposed to check off:Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is unresolved_______days (180 if not specified) after the Settlement Date staled in Paragraph 4(A) (or any written extensions thereof) or following termination of theAgreement, Whichever is earlier, then the Broker holding the deposit monies will, within 30 days of receipt of Buyer's written requestdistribute the deposit monies to Buyer unless the Broker is in receipt of verifiable written notice that the dispute is thesubject of litigation or mediation.

I think it would be a good short term strategy to make more money and I do recommend it but here are the cons you should know:The renters will not be friends So when conflicts exist you can more easily be brought in.They will not be interested in working out who cleans the common areas so you will need to do it or hire it outThey will fight over using each other's thingsThey will use each other's things and not put them backYour lease will need to deal with conflict resolution and noiseIn general, it's more work. 

That is still a valid concern for me as we want to do things right.The resolution to tax concern is to do 2 year buy&Hold and do a 1031 exchange.

If it's purely a deposit dispute, and not a specific performance claim, you should be able to continue marketing and selling the property to someone else.