According to my real estate agent, deals like the one I encountered are extremely rare and sought after, but im a bit worried its too good to be true.

Does anyone have any suggestions or encountered this problem?

@AARON CHOI I could see a one time fee if the current bylaws require a new occupant to register with the hoa and get a parking sticker, etc.

In addition, if i were to find a bank that offers this package, what kinds of hurdles should i expect to encounter before loan is approved (e.g. appraisal, state/local ordinances, etc)?

Make sure you are making fair, initial offers, as to not lose the sale due to "sticker shock"

You don't want to encounter some unpleasant surprises later that might affect your profitability.

sticker on the door warning not to turn on any breakers or water.

I was told I still had the option to initiate a transfer, however, I would have to pay the 3% transfer fee and pay the variable 14-24% interest rate while funds were in use…Just like that, 40k of capital to go out and buy assets and get them to cashflow……gone.As a value-add real estate entrepreneur, I understand with every challenge encountered, there is a lesson to be learned and an opportunity to evolve.

In the interim, I had reflected on potentially shady pattern in my interactions/encounters, I decided to cancel the deal per the contract as the title was not deliverable by the closing date, confirmed by the title company.How do I get my earnest money deposit back, and when does the title company give it back? 

I would start with some of the educational material here on BP in order to get answers to those questions and the many others you will encounter!