This money is the cushion to fall in case something goes wrong.

I do not want a deal to fall through because I find out last min. that the FHA doesn't like the condition of the house?

They will give me a few receipts but no detailed, itemized work listed which leads to more questions and now I'm feeling that I have been the victim of a scam.

Banning them altogether is concerning, said Debra Carlton, senior vice president of public affairs for the California Apartment Association.Through a background check, a landlord might be able to weed out a prospective renter with prior domestic violence convictions, for example, and prevent him or her from moving into an apartment near a victim, Carlton said.

Whenever I'm in negotiations with the request for repairs, I always look at other options so my buyers know the consequences should they fall out of contract.

A less experienced lender may not be able to, but they're also more likely to fall through.

You're right, between getting pre-approved to starting the search, viewing many properties, making offers, getting offers rejected, finally getting one accepted, then having it fall through (after the inspection, for example), then going back to looking at properties, finally getting an offer to stick and taking it to closing (which could take 45 days or longer), then doing the rehab -- it could take a while! 

Is the foundation cracked, falling in, water leaking, etc?

I would also focus on getting the right leases in place and assess the property for any possibilities for slips/falls/for inefficiencies.

I feel like this post was written by Sol Rosenberg of jerky boys fame and I'm falling for the trap phony phone call "Joey Bottamazda's Short Term Rental Cleaning and Foundation Repair!