I did compensate some with a free month and a lock to replace the cut one but that was a business decision to prevent negative word of mouth.  

Any delinquent loans are “put” back on the seller.From the seller’s perspective, it requires managing the complexity and liquidity requirements of outstanding options.To compensate for the transference of risk, notes with put options trade at a lower yield.- Sellers receive payment for the loan and a premium for the option.- Buyers earn a reduced yield but hold a valuable option.Much in the same way that equity yields are reduced in up markets when bought with put options.How often do you buy/sell debt with put options?

Therefore, if your rental income doesn't keep up with inflation, you must consistently reduce your monthly expenses or return to work to compensate for decreased purchasing power to maintain your living standard.No matter how many properties you eventually own, unless rents outpace inflation, you can not achieve true financial freedom.Back to Your SituationYou stated, “I don't believe that the property will continue to appreciate or see the rent growth it has seen over the past few years.”

It was known before closing due to the tenant mentioning it, the same time she mentioned the window was broken into the seller dropped the price to compensate.

I'm guessing the lawyers said he can't use complicated compensation structures like waterfalls. 

If they will be taking over the Christmas holiday, then they need to compensate by also paying for the earlier part of the month.

While the process may seem transactional, it's important to note that lenders are motivated to close loans efficiently, as they are compensated based on successful outcomes.To gain insights into lenders' performance, consider checking reviews or seeking recommendations from credible sources like the BiggerPockets preferred lender page.Accountability in lending is indeed a two-way street.

They are offering two months of rent as compensation (around a total of $3 for me).   

There should be clear language there about compensation for properties found on or off market. 

If they go month to month you need to be compensated for the risk.