No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..

If the rules are violated and you were lazy-fare in addressing the violations, YOU become directly responsible legal and otherwise.  

Pictures are great, but don't make them unrealistic or you will get "listing was not accurate" in your review.I was 50/50 Airbnb/VRBO, then Airbnb inquiries came like wildfire, like Airbnb knew that I was engaging with VRBO. 

I invest in about a 50 mile radius from where I live.

I hear you, I’m just trying to understand if they are able to do it (especially for $50), then I’d think I’d should be able to figure it out myself.

Well 50% is a bit much, IF you renovated properly.

It might make the most sense to just sell your primary residence and use it as 40% to 50% down payment on your future home. 

I would appreciate any advice on anything I may be missing with putting this together or should neogotiate before finanlizing.Negotiated so far:Property: 9 Unit - 7 Apartments + 2 Commercial Garages (4 unit apt building + 3 unit apt building w/ commercial garage attached + standalone commercial garage on same lot)Background/Why owner is selling: A seasoned builder of 50 years, the owner purchased the property in the 1970s for around $8,000.00, later developing three apartments and two commercial structures.

Once renovations are complete, carefully screen tenants, set clear house rules, and consider furnishing the units with utilities included to attract reliable renters.

Don't focus on a "rule of thumb" as a rookie.