How do you suggest I present the deposit & rent increase to the current tenants??

Yes, that's enough of a deposit to borrow another say $150k (unless you're really gung ho and want a ~95% primary mortgage), but then that brings into focus your DTI as it relates to how much income you'll derive out of your newly refinanced ~$335k investment loan - together with your yet-to-be-approved hefty new primary mortgage debt.For your sake, I hope you already have very good assured income. 

Most wholesalers require $5000 non-refundable deposit paid directly to them. 

Seems they had put a deposit down on a rental, showed up with a U-Haul and found the person claiming to rent it was a scammer. 

I was listening to a podcast from biggerpockets and heard the phrase earnest money deposit and I was just wondering what exactly that is?

Be sure the # of beds on the voucher match the property.

You could keep doing what you're doing and be just fine . . . if that matches your goals.

With the execution of a new 1-year lease and placement of a security deposit by the new tenant PLUS a pristine final walk-through of the property, you will allow her out of the lease. 

Here's the verbiage for any of you who do them regularly.Thank youBuyer's Premium: Greater of 5.0% of bid amount, or $1,000 (Buyer pays at closing) CASH Earnest Money Deposit: Lesser of 3.0% of bid amount, or $15,000.

He is in deep kimchi....However if (as I suspect) there were verbal COs and the contract does not match the plans, Etc, Etc.... then you are in trouble.