The answers will range due in large part to how the transfer (wholesale deal) takes place and the price points.For instance, if an REO, it is likely not "assignable" so if the buyer of the REO is using a second escrow for a double closing, then they will want a non-refundable deposit so you don't walk away and leave them holding the bag.If it is assignable, then it all depends on the contract wording that they are taking over, if an inspection period timeline is left over, they still have that.In other wholesale deals, they are mostly non-refundable deposits to keep you from backing out at the last minute with nothing to lose, that protects the wholesaler.As for inspections, typically, you as the buyer should do your inspections first, then decide if you want it and at that point, a refundable deposit is not needed, you have already made your choice to purchase the property.

About $15k in debt service leaves me with $30k annual income, not great, but its enough to live off.

Sometimes when they leave, they leave behind a key with a neighbor or "hidden" under a rock, floormat, etc.On one REO I visited after it had the front door re-keyed, the keys to the back door were left in the mailbox!

Can we just have the sheriff come over and make them leave?

$900 a month. 50% for all expenses, vacancy and capital leaves $450 a month, $5400 a year.

If he defaults on his lease, leaves your place a wreck @ move-out, or he is just a problem tenant, you will have to evict him and/or file a law suit to collect for damages.

IMHO you need to leave your cousin out of it.

When it's time to sell, would it show ok leaving as is in brown or would it show better to paint white?

I've placed what I thought were good tenants in my rentals only to have them make a mess and leave me with utility bills.

After 2 years, you have a choice... you can either refinance your FHA into conventional (NOO will typically only loan to 75% LTV) and do another OO FHA... or you can buy your next OO place conventional (typically 20% down) and leave your funding as is on the 1st place.