this type of arrangement is unusual at best.  

I agree about reserves and feel uncertain stretching myself so thin.

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 am also uncertain if i should approach homeowners who are already under contract with a real estate agent.As you can see i have lots of questions although im somewhat knowledgable it just feels like a whole bunch of puzzle pieces that needs to be put together.if there’s anyone willing to help out I’m sure this post will not only help myself but other beginners who are too shy to ask for help or where to start.

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. 

They're doing well, but not stellar.Thanks to the uncertain economic times in MI, I've been very cautious about what I buy.

& I can tell you in no uncertain terms that you are absolutly CORRECT

The only thing that's unusual is the financing.