This is not something I have encountered before, and I am very curious what the justification is for making you pay the seller or broker for due diligence.  

Choosing the right Tenant can be very crucial as to how many evictions we may possible encounter.

Many people, myself included, prefer to deal only with "accredited investors," because you encounter the fewest problems here.  

Put stickers on houses.

I also gave a detailed list of the improvements (both to the lender and the appraiser) we made to it, showing why our property is better than the other comps, but listed at the same price.Has anyone else encountered this?

Haven't heard of that 10% balloon item, first time I encountered that, I could understand 10% retention.

Long term, it can be a tremendous investment but getting to that point is the "sticker shock" that's unsettling in my eyes.  

I've encountered a few agents who won't put pen to paper for a simple cash flow analysis and it would be a great resource if you were able to show the client what kinds of returns they can REALLY expect.

And Jim, isn't a letter of intent leave you at more a risk the seller backs out while you're working to bring buyers aboard whether by the seller losing their nerve or encountering another more favorable offer?

All mail was going to his office, did not know the house was in foreclosure until stickers were on the door from the sheriff.