They have experience, they handle most of the risk, they handle 98% of the hassle and they arrange the financing. 

I like the U shaped arrangement of the tables that allows everyone to discuss issues, trends and network.   

Do lenders frown upon this arrangement?

I arranged for a pest control company to come out and inspect the entire property and they were isolated to the tenants unit.  

We have acquired properties this way, the benefits to the buyer are typically limited, if not elusive.If I were looking at your business, based on the items listed above, only the financing arrangement would possible be of interest.   

I believe the seller is legally obligated to make the tenant aware that the house is being sold so that the tenant could make their own arrangements.

I would not trust the tenant to hire a reputable installer.I would also make arrangements for the tenant to contribute to the water bill.

If there isn't I would have made arrangements to get out there ASAP.

I always have insurance cost included in the hud my property manager arranges it for me.

Keep in mind that these programs are often short term arrangements for the agency/client, so you definitely want to get a very clear understanding on the role of the agency in the tenant/clients life and how long they will be around to help them pay bills.