Should I discuss some bullet points and do a small contract between me and the buyer or is there a standard contract for such that we can agree up on terms prior to handing the deposit to the title company?

Speaking of objectives, you will likely notice that their rates used to be much higher (I saw a lot of older posts with 9-11% rates being pretty standard) than they are now. 

Similarly, make sure all of these transaction participants maintain adequate insurance and list you, the property owner and any intermediary as additional insured.If you rely on an intermediary relationship (most commonly a General Contractor or Property Manager), understand the authority granted in any agreement you execute to act on your behalf.Review the indemnification provisions in any service agreement ensuring the standard of care will not preclude insurance coverage and the provision is equitable.To recap, it’s not necessary to form a land trust, separate management LLC’s or form entities in specific states believing you will hide in the cloaks of secrecy.

Excess Liability:  There are non-standard (excess/surplus lines) options to cover after the current $2mm umbrella is exausted. 

Is Water backup endorsement important to add on?

All standard commercial mortgages include DSCR, calling an assisted living facility mortgage a "DSCR loan" is like calling a home loan a "DTI mortgage," or calling a cup of coffee a "caffeine coffee," or calling a gun a "bullet gun." 

This means that the buyer's broker’s commission is usually taken care of as part of the overall transaction, similar to the standard practice mentioned above.Broker’s Agreement: The buyer's agent will typically negotiate this arrangement upfront, ensuring that the seller covers the commission from the sale proceeds.

I have seen a few scary things like "you need to dig up the entire front yard" in other groups but I'd like to hear from people that are actively investing in the city, and meeting the new standards, as to what their experience has been.

Only these type of requests (water leak and no heat are urgent) and then you should text/call (your preference).

Their seller side commissions are half of what's usually standard in an area (1 - 1.5% vs. the traditional 3%) I know you're asking about FSBO but maybe Redfin could be a good middle ground for you.