While there are lots of other factors to consider, assuming all things are equal, and while we are talking about cash flow vs value, It could definitely make a lot of sense to pay/lose out on $2,550 to gain $6,000.  

IE it went up 6% in the year to cover Realtor fees.. you might break even in the Bay area if you had to exit in one year. in the Turn key markets you will FOR sure lose money.. and most likely will lose Capital anytime in the first 5 to 10 years in most lower end turn key areas as values are stagnet and really don't move up unless the homes are completely refurbed again and run through the high powered West coast marketing machines that Turn key operators are ..

Sure you would lose your earnest deposit  (1k) , but would be saving quite a bit more than that if you paid too much for the property. 

I met with a seller today who's going to lose over $200,000 on the place (bought at the height of the market).

I think for the house hacking approach the first goal should be to have your tenants paying for your expenses so you're able to live there for "free" So if you'll be making enough money from rent to pay your regular bills like the mortgage, taxes, insurance, utilities, etc. and can put the excess money and your own monthly "rent" contribution aside for cap ex and other maintenance you'll be in good shape.

Will list property for sale residentially (but likely to lose money) and commercially (which of course has long lag time).

Auctions are posted, times are posted, and those that don't show lose out whether they are representing the bank or even the home owner.

That may be how your lease is written but it sounds excessive, as most states that have weighed in by law on late fees cap it at 5%.

She's losing money.

I hope she did not lose too much earnest money.