now you make 7%  on a better asset  say a 100k home you put 25k down on .. that 1800 a year positive.. you going to risk a wipe out for 200.00 dollar a year and all the aggravation and stress that low end tenants bring you.. ???? 

Those crappy homes in bad areas are great for cashflow if you don't mind the headaches, but in just a bit more expensive market the aggravation level goes down significantly!

I understand that it might be aggravating in the short term, and might need to float some mortgage payments. 

You REALLY don't want to buy an REO from this bank, that is unless you really don't mind being stymied and aggravated to the point that you want to walk away from the deal.

On the other hand, those that may have something to hide get aggravated by thorough screening.Thoughts?

This way you put in 15,000 and you have 25k to 35k equity for the aggravation.

You’ll save yourself lots of aggravation and money and if your patient time.

If you were paid up and they just closed it due to a screw up I would start there with some financial compensation, not for the rent check but just for the aggravation.2.

Until recently responsiveness was not on my radar (because when things are going great I do not need to contact sponsors) but taking multiple weeks to get a response was both aggravating and caused me to fear the worst.

If you look at most of their costs - it can be done "the old fashion" way without much of the hassle and costs and aggravation.