$1000 deposit on a longer settlement, reno and sell on your settlement day or just after?

Good in theory, but extremely difficult to actually do.

You can put down any deposit if the vendor agrees to it. You will also need special conditions in the contract to make sure the vendor agrees to let you show the property to prospective purchasers too. Once you have found one you need to make sure they can settle by the date you need to settle. If it goes over the date you will probably be issued with a notice to rescind and then you will have 14 or 21 days in which you must settle or the vendor will be able to cancel the contract and keep your deposit (and sue you maybe). So really you should be a loan setup ready just in case. You will also be charged stamp duty as you will settle on the land for a millisecond before onselling to the new purchaser.

Maybe a safer way would be to use an option contract – so you have the right, but not the obligation to settle. If you can't settle, then the vendor just keeps the property and your option fee. You may also get out of stamp duty, or have it greatly reduced, as you will not need to settle, just reassign the option to the new perosn.