Take this or walk away..

[Katherine T.]

I am new investor under contract on two properties by the same seller RE investor - turn key.  Both houses cash flow 150 -200 per month and are already occupied. I am required to pay $2500 per property for this service-- tenant vetting, other home certifications etc.  One home appraised for the asking price value.  In other words seems like I am purchasing it for market value.  Its also in a declining neighbourhood so my concern would be the exit plan as well as this not really being a deal.  These are my second purchases simulataneously and I do not want to make costly decisions in the future.  Others advise / perspective will be greatly appreciated. 

1. What does it mean for me when a home does not appraise above the asking price? 

2. What would more seasoned investors do?  Walk away or purchase..?

3. What do yoll think of the upfront fee - $2500? 

4. What are the consequences of breaking a contract?

Thanks!