I'm confident on my abilities but if something happens and my loan is not approved..... can they really take the initial deposit if they have other back up offers

So if it was just a small deposit I dont know if I would have fought it.. but it was 50k and it was a project we were going to develop not just live in or make a marginal profit on a fix and flip  ( but it would take a lot of work on our side for land use etc to create the big equity upside).. that all said I sued her we left  in Escrow the entire purchase price for a little over 2.5 years and finally got a court order that required her to sign.

You better get 4 month security deposits before jumping in out there LOL!

Once you release the seller can take your earnest money deposit if the contract has expired. 

They can help you screen, collect security deposit, collect and automate monthly rents, and provide renter's insurance. 

My intuition is to hire a real estate attorney and have them draft up a letter stating that the closing is contingent on the release of HOA documentations and I am entitled to a refund of my deposit without those documents. 

Lastly, if you want to make a strong offer, offer a larger deposit and down payment than the typical 3.5%.

The tenant gives an upfront deposit (ie $5000) and pays higher than normal rents and then will have the right to buy the house in 2-3 years.

I thought that I had all my stuff in order when I purchased my first property but I didn't get the current renters deposits during the closing process.

I have these great tellers at a little bank that take my multiple renter deposits every month, usually without a slip.