Offer an incentive, like smaller security deposit than expected or offer a two weeks free move-in special. 

I used my own cash for a $2,500 earnest money deposit and joined forces with my dad for a VOF on a down payment (paired with a private money loan).

If you and your father plan on matching capital, but he intends to do the work, maybe 45-55 split is in order.

Make sure that you explicitly state that the deposits turn over to you at closing.

I have not seen anything yet but was told they would provide a letter allowing me to turn them on for 3 days but I am responsible for all costs.... deposits, connections, plumbers, etc...

If it needs 10k in repairs then I subtract 10k from my 60 Xs.In your last question are you asking how much you should charge for a security deposit? 

I will tell you though that one of the banks biggest fears is going under deposit and it not closing, so if they think one offer may have a high likelihood of falling apart, they might be able to justify that it's better to take the definite cash deal now (if the numbers are close).If you want this edge, be sure to make an all around SOLID Offer:- 10% Deposit- Proof of Funds- No Mortgage Contingency- No Inspections- Close before the end of the month.If the offers are very close, with these terms you might have a chance .. but if your $5-10k+ less than the 203k Rehab Loan, they will probably take the rehab loan.Also keep in mind that in most cases the banks do not care if you have inspections, or a mortgage contingency. 

The bidder subsequently filed to rescind his bid, however lost his deposit and was forced to pay additional fees to cover court costs. 

I did already collect a 1.5 month security deposit. the most I can legally collect in NJI am a bit pissed off that I was lied to, but at this time I have no interest in evicting her since she pays on time and I know I would lose at lease 1 months rent while looking for another tenant.

I recently purchased a duplex for rental purpose and agreed with seller to escrow one of the tenant damage deposit with title company.