Ask him to work with you and explain that you cannot break current lease until a new tenant is confirmed  (that means you have a signed lease and deposit from new tenant).And just remember, this also gives you a chance to raise the rent (if necessary), which can take the sting out of hassle of tenant searches.  

The property sits on a huge natural gas reserve and may ignite at any time20.

I would say have enough reserves for repairs.

@Kevin Estey - So to confirm - Wells Fargo didn't require you to be present in the USA to setup the account?

There are definitely a few benefits to keeping them separate, and potentially legal implications depending on where you invest:Opening a separate account for security deposits will ensure that there's no chance of them being spent - this is the one that might be legally required as well.Keeping a separate "operating account", even if you're not a business, can absolutely help you keep the two sides of your finances apart and more accurately track income vs. expenses and the reserve level that you have for the properties.Theoretically, if you're using a very detailed budgeting/outflow tracking application or scheme, you could make the operating account unnecessary...but it's a very small action that will help you simplify things greatly, especially around tax time.

Worst case scenario: Seller decides to accept and signs, despite your oral reservations about the contract you had signed.

Also the idea was the cash back at close was to be used for reserves this is what they were sold you put those funds into reserve to help you with your properties.Well many of those folks had never gotten 25k in their account at anyone time.. so the reserve account went for the new Jet Ski they deserved to have.. the fabulous Hawaiian vacation they needed to have and deserved.. etc etc.

I would have $2-3k in reserve for these...Realize you may lose some or all of the existing tenants when he sells..

Current Numbers:Purchased for 95k in 2005Note Balance $59,830.20Rate 5.75% 30 yr fixedMonthly Payment P/I $675.35Rent $1000.00Cash Out Refinance NumbersCash Out $13,885.73 + about $1500 from our escrow accountDebt to be paid off $60,000.00Est Prepaid Items/Reserves $2160.27Est Closing Costs $3289.00Loan $78,750 15 yr fixedRate 4.5%Monthly Payment P/I $831.09Rent $ 1000.00Rough Numbers If I SoldSell Price 110kLoan Payoff 60KCommissions/Closing costs 8kCash to buy a better deal 42KSo based on all this, what are your thoughts BP?!  

Learn how to run comps and analyze deals the best you can (search on the BP blog for 65% rule for wholesalers) and then when you think one might be a good deal, bring it to the investor who has agreed to purchase the property, and ask him to confirm your comps and give you feedback.10.