.: Hello,I've purchased a few properties now and this is a first.

I wasn't sure if I should just update the deposit to what is still owed to the tenant and that's what I give the new owner and possibly sign something saying that if the tenant disagrees with that portion of it, I will still assume all liability for that?

This is a great place to learn and further investigate investing in real estate.

I have done this before and now find the risk just to high.  

Maybe doing a HELOC would be the best way to go so I can keep the property (which really has done well for me over the past four years, currently has a paying tenant, etc.).

You can apply the deposit to cleaning, repairs, and unpaid charges.

Having recently purchased a parcel myself, but not being an expert in the field, I'll happily refer you over to a fellow who knows all and sundry on coverage via DM. 

Bigger Pockets is a great place to learn and connect with fellow investors.If you’re looking to invest long distance, I definitely recommend building your core-4 team.

Just be sure to separate the building value from the land (land is not depreciable) and allocate expenses proportionally between personal and rental use.

You do it all over the phone, via email and docusign.