First, any security deposit he has, could likely be shifted to down payment at closing. 

You may get lucky and find a renter to pay that but most renters will just move out, forfeit the deposit, and leave you trying to chase after them to collect.

Then you can decide what that practically looks like as far as provide deposit refund, maybe being flexible on move out date etc.

Now, if you were to find something BIG during that inspection that was going to be a nightmare if you purchased the property, what you could do, is simply walk away from the deal and the Seller would just keep your earnest money deposit.

Not due a deposit. 

I had a built in Miele K in this cabinet that carpenter built to match the you know the whole nine yards...

So before you take one set of questions – please add you flavor to match your expectations.

The purchase price was negotiated down by about $40K prior to going into contract.Question - does it seem strange that the appraiser's value exactly matches? 

Personally I allow pets and I only charge a deposit not pet rent.

We had our tenant send a text message stating she was giving her 30 days on a month to month lease on July 31 asking to live out her security deposit.