I would ask them to sign something that says they will need to replenish the security deposit as soon as they are back to work.

We use a lease option model where every new resident pays $3900 plus the first months payment so we replenish around $5k for every new resident we fill a house with. 

So if the tenant decides to use their security deposit as rent, you cannot replenish that security deposit up to 6 months after the emergency declaration or new lease.I have been reading on the forums that people think you can’t evict for 60 days.  

And to make matters worse I can't replenish all the cash I have dumped into the construction costs by taking out a HELOC because the property has a lien from the City as a Hazardous Site since initially we didn't obtain a Permit from the City and got flagged by the Inspector. 

My house is currently appraised to 600K, I don’t need to refinance because I don’t need the whole amount now, I needed line credit to draw for down payments for the multi-family properties I am planning to acquired and replenish HELOK as I go. 

It's perfectly legal, however also perfectly dangerous.9 out of 10 people who take this route end up unable to replenish the borrowed money, resulting in huge cost: full tax plus 10% penalty.

My plan right now is to use a heloc for dp and rehab, sell the house, replenish heloc, rinse and repeat. 

I do want to give a shout out to @Russell Brazil since he's been giving this frustrating newbie an investor/realtor's perspective of things.Still got a loooooooooooooong way ahead of me until I can start replenishing my bank account...

I would say $5000 per property is a great start, but you should look to grow your reserves each month so you don't have to replenish it all at once if you end up needing it.

Inflation is killing your money, and interest is killing your money.If you apply every bit of surplus cash from your rental to the pay-down of your HELOC, you'll avoid the most interest; you'll replenish your funds faster; and you'll be able to buy sooner.