Thank you for the advise @David Abellard Jr  since I have posted this add the county allowed me to get my money back less the deposit of $5,060.

The question is who would cover the cost if the insurance claim comes back less than the cost of renovation?

As others have stated, it seems a little incredulous that it appraised at 150k is livable and your after repair value with only 30k put in is going to be 240k, especially since most of the work you have mentioned (plumbing, gas line, windows) are unlikely to give back more in appraised value than the replacement cost (and with windows likely give back less).

Then have a few pool companies give bids, you both agree on the final bid and if the cost from the pool company comes in under the amount, the seller gets their escrowed funds back less the cost of the repairs, if not the funds are used to complete the repairs when the time comes. 

@Wayne Brooks well I live in a neighborhood that was build a few different home layout plans probably a good 6 diff or more layouts but the interesting thing is my exact home just sold for 279,500 I have kitchen cabinets and the one that sold doesn’t even have cabinets around his faucet area it looks tacky but his sold for way more and another just went on the market and is listed at 299,999 so it really throws me off on how it came back less

There is no "obvious" reason why you are trying to pay back less than you have borrowed.

If they are out and leave the place empty and clean, I give them their deposit back less daily rent on move out day in cash.I really prefer to do the walk through without the tenant.

It means you borrowed less, so are paying back less!

Currently we are told that permit time frame is 4-6 weeks, but other cities I've worked with said the same and come back less than 2 weeks.  

If they are less you give him back less money.