I don't have answers for all your questions but my opinion will be as long as you disclose to the sellers and they understand that they are selling their asset in a deep discount ( in your case $18500 vs $60K value) you are fine. 

As an investor, you want to grow your portfolio first wide (number of assets, total property value), before you grow it deep (de-leverage, equity). 

The research will investigate potential soil contamination, ground and surface water quality, along with the presence of hazardous substances on the site, and will include researching files from various municipal and state departments including the planning and zoning department, health department, fire department, and the Department of Environmental and Energy Protection (DEEP).

Believe me.... with the way our government is operating, $100K in premiums paid today is going to seem a lot less ten years from now.Not being an agent or FA myself, you're best off talking to someone who is, and having them deep dive on the policy. 

Yeah, $5000 is a lot of money for me, to add another $400-$600/mo will not give me enough breathing room.

To check it out well, look into the market deep, get a pro to inspect, dive into the money details, ask local pros, and talk to a property lawyer.

- Do they focus on multiple asset classes or is it an inch wide mile deep, narrow focus? 

Purchase Discount: It's crucial to buy properties at a deep discount if you plan to BRRRR and get cash back.

@Mohan Deep, in most situations you will never recover that money.

Should take the opportunity and ask the bank to renegotiate the purchase price at a deep discount?