Don't get caught up in inspector drama.  

Now the landlord's story has changed even though I said I will go back to paying on the 20th to avoid drama the landlord still wants the prorate.

Late payments, stories, self inflicted service calls, general obstinacy and general drama.

You can make money, but there is drama and your management needs to be top notch2) Nicer stuff with 6% or worse caps.  

2)  Drama- Lots, and lots of drama from tenants.  

Too much drama in that county, and way too much crime.  

I dont see how you could think that you could get away with only 5k out of pocket if the seller said they would not contribute to your costs.Im sorry if it sounds harsh, but again 3.5% of 165k is over $5k.If you found a different house where the owner was willing to take back a second lien position, that would work.  

Both new and seasoned investors can gain wisdom from the harsh experiences of others.

Not trying to be a jerk here, just warning you of the harsh realities.

I'm sure you can find a landlord that doesn't want any drama.