You should be able to keep the deposit and send them to collections for the AC and any unpaid rent. 

I fear that since I want to have my first deal so bad, I will force my "promising" deals to match my financial objectives, what would you recommend to keep my head focused and not let my emotions rule the analysis of my deals?

Once you have a purchase agreement and earnest money deposit together, how much does it cost to have this accepted and recorded with the title agency for escrow?

We also accept deposits through these two platforms. 

I would recommend attending local meetups to meet investors who you have a personality match with, or to meet someone who is doing exactly what you want to do.

I have decided to sell the rental property to diversify my portfolio, and have set up an LLC in my name only with its own new banking accounts that the funds from the sale are being deposited into as I type.

Considering that the unit was in good condition, I didn't consider increasing the security deposit. 

I collected a 7k option deposit from them and my agreement with the seller was for 1k option deposit. now I need to know how do I close this deal and collect the difference I'm owed. do I assign it back to the seller?

We have gutted the entire place, and because of the age (1989), are replacing every valve, electrical outlet, etc.Anyway, that's my sad sorry, and as much as I wish they would pay me for all the repairs I don't expect to see any money except that $600 deposit (already spent all of that on the dumpster).

He requested his security deposit back although his ex-wife still live in the house.