Only thing I can think of is possibly use some of that extra money to cover closing costs or perhaps use it to improve the property? 

They don't actually own the land or the improvements on the land, rather they just own the legal right to collect a fee from whoever owns the title deed. 

This way you increase the chances you can weather a storm if the market crashes without bleeding from the pockets or having to liquidate the property in a none desirable fashion.

I am an agent and have limited experience in Property Management.Some of her requests include the following (Tenant and LL verbally agreed already):Tenant will do all the cleaning and cover the costs before move-inTenant may make home improvements upon LL final approval and city permits3 Month Security DepositI did some digging on BiggerPockets. 

I currently live in a D minus area were I have to watch my back just to get in my car. this new area is not the ghetto allready a big improvement for my personal living circumstances.do these numbers add up to any of you guys?

There is less competition there and you have the rewards that can come from the cap rate when adding positive improvements. 

Taking a deposit from tenants helps to mitigate the risk and may keep you from having to file an insurance claim in the event that there is any damage to your unit, plus if the tenants have "skin in the game" in the form of a deposit that they are at risk of losing you may have a better chance of renting to a tenant and getting your unit back in tact at the end of the lease.

(a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs incurred by Lessor relating to the ownership and operation of the Project, including, but not limited to, the following:(i) The operation, repair and maintenance, in neat, clean, good order and condition of the following:(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, and roof drainage systems.

I do have a low interest home improvement credit card at 7% and I have up to 17k to use on that line of credit and about 5k saved.I'm afraid I'm going to max myself out... afraid I'll buy too low and too much work will be needed... or buy too high and not have enough to finish.

If it's on the MLS and it's a great deal, chances are he has received multiple offers and will get it sold at the best possible price.