The rent you will receive will more than cover your increase.

(I once loaned an experienced investor $10K for 2 days and received $1k in return.)

The property had a house fire and the owner has received the insurance money.

Still newer to BP community myself and meeting new people, but have already made some great contacts and received some great advice.

The seller can receive his capital gains over time, spreading out the taxes that the seller has to pay.  

I understand it will be non refundable, and the rest of the deposit along with rent should be received upon signing of the lease which will be July 15 (I will prorate the rent)Is there wording available I can use when I draw up the document?

The most common structures I've seen are either pure debt offerings or preferred equity offerings where investors are paid a predetermined return before the sponsor receives any profit.  

The information I am receiving from Bigger Pockets has been very practical, real world, and less hype. 

Here are the terms : Transaction Details: Buyer will not be charged a Buyer's Premium for this propertyIf you are the Winning Bidder, an Earnest Money Deposit of 5% of the total purchase price or $2,500 (whichever is greater) is required.Buyer may receive a Special Warranty Deed or equivalent if Buyer is able to purchase title insurance without delaying the closing (title fees typically cost between $500 and $1500 and are based on the purchase price of the property).

How do you plan to use the $35k you would receive in a cash-out refinance?