These folks sound like those type of tenants desperate to move in so they can play their game with an owner. 

I have had a few clients in my market send out some 50-100k plus lowballs looking for a desperate seller and we are just not there yet.

There is no incentive to negotiate and there are a lot of risks and downsides to doing so that a lender won't mess with (Think discriminate or desperate treatment to one class of borrowers over another).Your lawyer is flat out high if he (she) really said that to you (Put it into an LLC).

If you are desperate to get a tenant because you have to have one then you could end up selecting a tenant that is not high quality and create more issues for yourself. 

I'm sure lower down payments are done everyday, but probably with more desperate, or less well informed, sellers which will usually be off MLS deals.

There's a reason they are desperate.

Granted, there are people that are desperate, but I think it'd be best to tell them that and see whether they are interested. 

if they move in december, you'll have a smaller rental pool. you could wind up having several months of vacancies & renting to someone out of desperation & they screw you over. i agree that few do leave in the dead of winter but why take the chance?

But we had a friend that was in desperate need of a place for her and her 2 kids.

They desperately need housing right now, I’m currently renting to nice section 8 tenants in a similar neighborhood, 3/1, with some new updates for $950.