So you will need to permit and construct these items on your end.

This could be a costly hidden item should it come up.

Sounds like a lot of upfront legwork and cost, with as tight as the market is right now, if you have a good deal it should sell very quickly with or without these items.

Very cheap properties however will have a higher percentage as fixed costs for low prices then become a higher percentage than they would be on an expensive property.Also keep in mind prepaids and escrow are not closing costs, its just you funding those items before they are to be paid.

For traditional mortgage I need at least 20% down.

Instead of being focused on the public exchanges as the investing platform, however, they have the paperwork and staff training to document non-traditional asset holdings such as real estate, private placements, mortgages, etc.   

As a last resort, if your mortgage broker managed to qualify someone for a mortgage right now, you could cancel the lease with the seller and just assign the option so they can close traditionally.

The only security deposit deductions should come from move out damage.By this method your property is always in tip top condition and turn over costs are reduced to your normal wear and tear items.

Fellow landlords, I am curious if you are doing anything about lighting fixtures inside your rental properties that use incandescent bulbs wired to traditional dimmers.

I would keep all of that and then just him a new check via regular mail.Except I'd also add one more line item to the deductions for unnecessarily having to buy a 50 cent stamp, because he was too lazy to pick up the certified mail you'd already sent.