There are plenty out there with fair rates and lower fees.

It's eating away every bit of cash flow from the property and then some.Both units currently have baseboard heating - which I've heard can be on the more expensive side of heating options - but I'm not sure if this amount is realistic for the area, or if there is a better heating option that I should look into for a reasonable cost.

With the fund I used, they had a month where they had a few defaults, the return was a bit lower, and they sent out an email apologizing for the lower yield. 

Over the past several years it has seem there have been more and more options.

However, an easier option would be to use a bridge loan to help with acquisition and rehab financing if the property needs some work.

RentRedi has options of "Accept", "Reject", and "Request Update (more information)".

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

Lower than that?

I was looking for some advice (viable target areas in Cleveland or Ohio in general, financing options and credible PM/realtor contacts) from the experts here though especially if you are in a similar boat as mine (reside in Canada/Ontario area and invest in US). 

Regarding price, do you have any suggestions on how I can get him to agree to a lower price?