This is not unusual. 

Any unusual closing costs that we should anticipate?

Both of those can be challenged and updated.3 - Get quotes from different insurance companies and brokers.That sounds like a waterfront rate, which is not unusual for a property backing up to a drainage area.

There are systems that would allow it but it’s unusual for a tenant to pay their water bill.

Oh, and did I mention they don't pay the LO any more than a vanilla loan AND take up 3x as much of the LO's time, as well as taking unusually long to close?

this type of arrangement is unusual at best.  

They did make us an offer and increased it by $7,000 the same day without us even turning the initial offer down which is a little unusual.

I don't know anything about that business, but seems like an unusual place to start that business.

Requirements vary widely, but generally you need:A property with in-place cash flow producing adequate debt service coverage ratio (net income divided by the loan payment, generally looking for 1.25+).Potentially, minimum trailing occupancy rates.Well thought-out financial projections / business plan.Enough relevant experience to give the lender comfort that you can successfully execute the business plan.A net worth equal to some percentage of the loan amount.  100% is not unusual, but varies by lender.Cash reserves that range from a certain number of months of debt service to percentages of the loan amount.Good credit and track record.

.$40 is probably normal, but I've seen some lately that have no app fee.Also $99 admin fee is unusual.