On a home that had been properly rehabbed, this should be a sound financial investment.Considering the fact that you are investing in real estate with unknowns - tenants, unforseen maintenance issues, insurance claims, etc - to me - a 4-5% return doesn't seem like an adequate return on my investment (risk vs reward).

The non-refundable reservation deposit becomes the security deposit once the move in is completed.  

Do you quick claim deed to the house to verify your investment is secure by the property?

If you negotiate a good enough deal that pays you then complete the transaction with the investor to buy the house you have under contract.

The issue with this agent is that she claims that the house was listed with her name attached and that was a dishonest remark.

Can anyone out there recommend a good ,fair, and insured rehab company or contractor that can handle all phases of a complete rehab in the Birmingham Alabama area ?

If you negotiate a good enough deal that pays you then complete the transaction with the investor to buy the house you have under contract.

Its expensive, but its completely transformed our business (seriously). 

I was thinking it is proof of Financing but was not completely sure.

Step 1: buy Dave Lindahl's book "Multifamily Millions", Steve Berges "The Complete Guide to Buying and Selling Apartment Buildings".