I think it was running the water heater too frequently. 

More frequent site visits can also pay off; get them on a maintenance inspection schedule and address energy wasters as you see them.

As far as the lender, many loan officers don't want to deal with investor loans or have much higher rates and fees than lenders who deal with them frequently, so it wouldn't hurt to research investor-friendly ones, especially those that work with up to 10 properties versus just 4 so you can start establishing a long-term relationship with the right people.  

Good tenants were placed with gross rent of $1200.Property manager calls me frequently worried about the house washing away in the next rain.

How frequently did you go out to the property supervise / check- in on things?

If you have to cut it then you would probably need a basic glue up shower surround which don't always last that long, require frequent caulking, and in my opinion don't look all that great. 

I already have access to MLS via a realtor,  I frequent the HUD, homepath, and VA webpages Daily,  I browse Craig's list every so often.  

In that sense, Bill is correct, they are essentially prepaid interest.However, depending on the structure of the deal, they are frequently origination fees that don't go to the lender.

from the lender prior to contractingItem 2 would seem prudent if this is happening frequently in your market.

Their "policy" of 'no-decisions = no-mistakes' / 'all our employees are incompetent' frequently creates a maddening process from a single buyer's perspective.stephen--------------