I have certainly found it sometimes difficult to see all the advantages and disadvantages of financing approach if you are not quite savvy yet - which I admit I am not! 

The biggest disadvantage is not being able to do a cash our refinance correct?

If they truly want to help veterans, they shouldn't put them at a disadvantage in the free market system.

That broker sends over a lease LOI with terms very disadvantageous to us, one of which is that WE pay him a commission (essentially to negotiate against us).My question is:  Is it typical that the Landlord pays a commission (4%) in a case like this?  

Each with their own advantages and drawbacks.The point I am trying to convey for so long here on the forums is simply this.Yes there are different systems with different advanteges ansd disadvantages, but within the realm of these different strategies there are still different catagories.You have inbound marketing and you have outbound marketing.PER DEFINITION, as in an inherent characteristic of motivated sellers is that it is not possible to target them, simply because there is no way of knowing when someone becomes motivated.Is being is a horrible foreclosure scenarion make you motivated? 

The disadvantages would be the high interest rate, the need to refinance, and the lower ROI given the expensive cost of the money, resulting in a lower amount of profit each month.Then, there is your personal line in the sand, where you have to make the judgment call of “is the investment worth it”?  

Maybe the disadvantage is you pay more perhaps than at the tax sale. 

This is the main disadvantage of owning the property at the personal levelForeign investors are generally subject to an estate tax rate of up to 40% on the property’s value above the allowed exemption of $60,000.

You are thinking about it correctly.Of course, all strategies you choose has advantages and disadvantages, including SEO.If a strategy existed without any disadvantages no one would do anything else.The key is to analytically weigh in the disadvantages, feasibility, probability and risk when determining what to do.

As a local investor in San Diego myself who used to invest in the Midwest...the low prices can be very enticing but make sure you really know the market first and what you are getting into before pulling the trigger...when you are out of state you are at a disadvantage as properties can differ quite heavily from block to block.