There have been Heroin addicts that say cigarettes are harder to quit than smack, but then there is people like my old boss who would smoke a pack a day consistently then just decide 1 day to quit for 3-6 months like it was nothing.What I will say is that I think your policy is too strict for someone who is desperate to rent, it would be fine if you had candidates beating down your doors to get this place but that does not seem to be the case.

How have these smaller buildings performed during earthquakes in recent memory? 

Are they consistent in what they teach and do they teach what is usual. customary and accepted or are they off the path with some great new way of doing things?

In other words, if you analyze 10 deals using the same methodology and relative estimates and they all come out +/- 12% cap, then I would say that your method is consistent and can be used as a baseline to compare  your actual  purchase to. 

(there is a reason the property is cheap, and that's because you will probably put in a lot of sweat equity collecting rents and dealing with residents)On to the actual management and what to expect .As you are discovering that closing on the deal is just the beginning, now starts the real work: Getting the property to perform consistently and provide you with cash flow!

The likelihood is that he is going to not perform, trash your property (what's he got to lose?)

If you are a principal broker with a brokerage then you should be getting the commission.If you are with a brokerage your broker is responsible for all real estate related activity you are performing however if an agent goes rouge that is not a brokerages fault but the agents for not reporting.

., for trash removal, elevator replacement, roof repair) the investors get a great price and excellent performance.  

The fee ranges from under $50 to over $1,000 with no requirement to justify the fee based on work performed.

They tend to be very long-term tenants if they don't perform and are frequently interested in buying.