They can have a prepayment penalty and higher out of pocket costs at times as the main drawbacks.

Take that number and multiply it by 12% and that’s your allowance for marketing per deal  Take that number and divide it by your historical lead cost.  

So all things considered, the 5% and 6% returns don't sound terrible to me, especially given the costs of selling and where the market is in general (high prices and relatively high interest rates).The 1.5% on the other hand is pretty tough to swallow.

Some examples of what I'm looking to connect on in no particular order. 

The seller can't cover these repairs before closing but has offered to credit the repair costs at closing instead.

Agreed with above - explore every low cost option to collect, but ultimately, it is the cost of doing business. 

My cost to operate using their current expenditures (which I have intentions to reduce) would be at $400,000 conservatively. 

However, this might involve significant upfront costs and logistical challenges.

There is no need for the tenant to shower every day. 2.

There is no "what is this on the HUD".