All you do is get some legal protection as it's not in your name but tax benefits are zero.

You have ZERO ZERO ZERO reason to be worried about keeping the deposit as long as you document every single action they took against your property.

Liability CoverageThe liability section of insurance is fairly similar across the entire country.  100k is the minimum required on a policy, 300k is recommended, and 500k is preferred. 

and why new construction for infill only happens in areas were you can sell homes for closer to 200k no way you are going to rebuild in an area were not matter the age the home will only be worth 60 to 80.. better to take your insurance money and move on.. those lots have zero value.. 

Everyone's risk tolerance is different, but if I were in your position I would do it (I did it 2.5 years ago).

Now, if you get the home for zero down because seller is carrying a second, payment makes sense for you and your costs are covered then go ahead and things MAY happen down the road.

Some lenders will tolerate high down smaller mortgage.

Since they were existing tenants and you do not have a no pet policy it is not a issue of denying the pet but rather whether the pet fee applies.

Buy a home with a zero down loan or grant assistance.

It's risky to waive contingencies, but depending upon your tolerance level for risk, you could think about waiving some.