, looking to buy somewhere around August onward but happy to get in earlier if plausible, will have somewhere in the $40k USD deposit available at that point with the potential to get substantially more but the desire to use less and stretch it as far as I can across multiple properties if possible.

Should I charge the cost of the deadbolt to the tenants deposit?

I was thinking if she can’t afford to pay for it that I can take it out from her security deposit.

You may avoid the taxes if you deposit the funds in an eligible retirement plan (which includes anIRA) within "3 years and a day" of the date of the COVID-19 distribution (note: compare to a 60-day rollover).

Or can we provide an itemized list with the remainder of the security deposit via mail and be done with it?

Or can I use the funds only for future operating expenses that will occur after the loan amount is deposited in my account?

Talk to them and let them know, maybe they want to move out and if you agree to give them their full deposit back they may just move out.

If the seller is smart, they will refund the $1k deposit.  

I prefer not to use any third-party vendors (Zelle, etc.) because firstly, that creates another link in the chain that can break down between the tenant's deposit and my bank account.

I'm guessing you have the security deposit and can keep that to cover rent, damages and clean up.