But on 100 year old homes in low value neighborhoods capex often exceeds cash flow over time.

While I know that return goals are different for each investor and their specific goals, it seems that a bad or low-performing deal for one person might be what another investor is looking for. 

If his landlord reference for the past five years is good, that would weigh much heavier than his eviction.Based on what you've shared, I think this is a low-risk situation, and I would probably accept them with a deposit equal to one month of rent.

More of a general trend, when we started we asked the same question. how low can I get it?

If your opt-out percentage is too high then it may look suspicious to the carriers; ultimately, affecting your delivery rates.The goal is to keep you opt-out percentage low while maintaining compliance. 

Here’s why lease options are a game-changer:🔹 Low Risk, High Leverage – Instead of buying a property outright, you lease it with the option to purchase later.

Here's the challenge: If the numbers work with a low down payment, why wouldn't an investor putting 20%-30% just buy it and could likely offer more?

Utilized a low down payment loan, maxed seller credit, tax proration and closed on the 1st of the month to maximize my cash and acquire this property What was the outcome?

Based on the fact that new construction is currently at a relatively low premium when compared to existing construction, I think this strategy might be a good option.

You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs.