Insurance would cover this along with the landlord's attorney fees as well. 

Most mortgage originators sell their mortgages to Fanny/Freddy and so follow their guidelines. 

Realtors can compete on commissions, or even offer a flat fee transactional rate for service. 

In most cases, the owner/possible seller would want an option fee paid up front to entice them to entering into the option to purchase agreement, so assuming that is the case, would enter into the agreement with a pretty firm plan to purchase and not lose that option fee. 

Along with the FHA loan, check out the loan from the Neighborhood Assistance Corporation of America (NACA).NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.comI wish you all the best.

Where do property management fees go on IRS form 8825?

It is hosted by @Tyler Jahnke at Original Pattern Brewing.

Look at this like a regime fee on a condo.  

And solar technology doesn’t get any better, the buy back and connection fees don’t get any worse, and you’ll probably get some of your money back. 

This is not a problem if you use a licensed CA real estate broker to originate your loan since they get an exemption against usury for loans secured by real estate.My strong suggestion is to find an experienced hard money lender at a local real estate club to originate the loan for your lender.