I think you will find that if you start backing out of contracts regularly, that you're going to build a reputation for yourself that you'd rather not have.

Just have a higher security deposit for next time to try and offset if this happens again in the future. 

Which is like a Social Security number for a business.

My other 4plex has HOA, but includes, gated community, pool, includes water, trash, sewer, and 24 hour patrolled security.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Home possible has lower MI  compare to regular conventional loan and lower interest rate. 

(B) Giving them a non-renewal notice and having them damage the property beyond what the security deposit is worth.  

First always seek legal counsel with an attorney:ask them the pros & cons of some of the following:1) Debt: secure a loan against the property you receive interest payments.2) Equity: record an option to buy the property (ex. you have the option to buy the property for $115k for a specified time period.3) Purchase a partial ownership interest, ex. tenant in common ownership of 50% of equity4) combo equity participation loan , you share in the upside equity.

(We're assuming an investor) All of a sudden our landlord has offered to give us double our security deposit money back and 'the full 60 days'.

I want a better CF by amortizing the loan over 25 years rather than 20 and the security (and costs) of not having to refinance every 5 years.