Tell them if you perform the punch list now that they will get their security deposits back sooner. 

They quickly sign a closing extension.

My focus is seller financed performing notes so I can learn the business first with lower risk investments.

There are too many variables to give a one-size fits all answer.Personally, I would put $1M into commercial syndications (money backed by a hard asset that historically performs well in market turmoil) and diversify the remaining $1M across notes, NNNs, SFHs and some S&P 500 index funds.

An appraiser will view the property and if the repairs are extensive they can be called out and create challenges.

I have a one-page extension that says the lease is extended for XX months with a new termination date of (enter date).

I'm also extremely skeptical if they aren't interested in me and my performance/experience or the deal, but focused primarily on receiving their upfront fee.

It will allow you to see what types of properties work for you and what neighborhoods within your market are better performing than others.

I just looked it up.It is a performance gauge, but it leaves out expenses. 

If they don't, they're not paying enough attention to the metrics that help them improve performance, which is a bad sign.I know I mentioned this before, and some folks will disagree with me on this, but I advise most investors (and new ones especially) to stick to B/B+ properties and areas.