I would normally pass, but the location and deal is too good.

depends when you sell. talk to a 1031 expert. what matters is intent. if you bought it to sell for profit then yes you'll pay your normal tax rate. if it is for investment and you can prove that you can 1031 exchange

So, the Realtor will add those since that is the normal course of management.  

It's normally free.

That is, we are lending you the unpaid money at our normal rate, which is currently 11%.

Is this behavior normal?

Based on what I have experienced investing here locally I normally advice people keeping the house as a rental if possible!

Mainly because I can craft the mortgage a little more (no pre-payment penalties, lower down payment, etc.) and eliminate the fees charged by lenders and brokers.One of the benefits of purchasing a listed property is that the broker will normally set the seller's expectations a bit more than you just contacting them off the street.It comes down to what the seller really wants: a certain price, interest, down payment, or term.

From there do your normal due diligence, and remember that cheaper is rarely better. 

Like a Wednesday afternoon normally would not work for me as an example.