The seller will be unable to sell to anyone else until the issue (your memorandum) is resolved (you buy it, or they pay you something you agree to for damages). 

They asked to live off the security deposit and I told them that I don't have to do that because it would be the only recourse to offset the damage that was done or will be done in the future. 

They celebrate paying off their outsized mortgage because for them it's a great life-changing accomplishment.They mourn when they have to leave the house that they spent so much of their lives in, like their cheap ticky-tacky tract-built place is an ancestral estate handed down from time immemorial and their lives are bound up with the soil it rests on.They fill their houses with just ungodly amounts of their crap, trying to own it more fully.They hire people to do the simplest jobs in their house because they're worried to death about structurally compromising the joint: "Oh no, if I replace this faucet and the faucet leaks there will be massive damage and a contractor will have to give me a quote and I'll have to file a claim with my insurance, and, and, and..."

Anything beyond normal wear and tear would be considered tenant damages. 

Buyer's may see this as a source of risk for flooding (esp with that basement) and storm damage.  

Luckily only the door was damaged, but my tenants had some pricey goods stolen (they thanked me for recommending renter's insurance prior to signing the lease).I've done the following to prevent future break-ins: security door, motion lights and a deadbolt on the fence gate.  

Still no contact from missing tenants. 7 days pass as I am in and out as my regular job permits to mitigate the damage done.

I was wondering what tips I can use to protect myself against the costs of any damages incurred and any ideas in bringing in extra income is appreciated.

This is where you would track (including date) rents due, late fees, application fees, damage charges, key charges, etc. and all the payments collected from the tenant.Good luck,Oren

But they’ve done so much damage that I’ve decided to change my name.I changed my name through legal means.