Your current $25k would be enough deposit for say, a $65k property that needs a $8k rehab (25% deposit ~$16.5k, ~$8.5k rehab).

The question has been raised on the Security Deposit payout.  

So, the $2,500 is a deposit thats needed just in order to place a bid?

However I know for me I have never been sued by a tenant.. in all these years.. squabbles over deposits but never sued. 

The LMR deposit remains with you and the tenants work it out among themselves. 

Does anyone have experience using a deposit bond service like SureDeposit?

My question is....Does the currents tenants deposit transfer over to me incase of damages or if the tenants leave the place in tiptop shape requesting their deposit upon leaving.

Until you get no payment you really can't do much but wait.You could offer a early mutual lease termination with 2 month rent penalty all off the lease..All sign. and security deposit is returned after move out to parties as set out in termination agreement to be agreed on in advance in this case. but check your state landlord laws to make sure what you can charge for on that, each state has guidelines. 

Compare that to just giving the tenant their security deposit to get lost in x number of days.

Look for bank deposits, checks paid, etc.Tax records are a good source as well.