Is this a normal practice/fee?

I invest in tax deed properties in Ohio, which has a slightly unusual system in that if you 'win' a property at auction, you only have to pay a deposit on the day (usually around 10%), and the full amount is not due until the sale is confirmed by the court (ohio is a judicial state), which is usually a few weeks later.This is sort of like having a property 'under contract', when you would normally go off and try to get funding for the rehab / a buyer etc.

These are normally called Ownership and Encumbrance (O&E) reports, but I can't remember if those are legal in MA...it's been a while since I've been in the business.

I normally call references and run background checks on the first applicants to give me applications and fees, and move on to the next if the first one doesn't qualify.  

You really should be counting your holding costs as if you are using all other peoples money at the normal rate you would get. 

I would totally "house hack" or buy a duplex or triplex (which all falls under a normal FHA loan).

Wake Up Early!

My second thought is that you might want to eliminate hotels from your future plans, a hotel is not a normal RE investment, it is more of a business, and that requires a lot more of your time and energy, plus there is a differant skill set involved.

*****Did your probate client inherit a distressed property that doesn’t look very nice, needs repairs and that won’t sell quickly using the NORMAL real estate broker methods?

Other than that it is pretty much a normal transaction to you as seller.