You are correct in that there will be extra closing costs, but the cash-on-cash returns with putting 30% down still looks really good.

The extra wording is not necessary where I am, where a LL just has to wait it out an get the sheriff to do the lockout.

(I spent $4,000 in repairs on my rental last year for an unexpected repair....it just happens and you need extra $ for that kind of stuff!)

Better yet, just pay a bit extra up front and get tailored, advice from a trained, insured, professional. 

It's something I wouldn't think to do unless someone actually told me I could, which you just did...I'm going to get my real estate license so that I can make offers and do some extra MLS searching myself, but I will definitely be in touch with you, you seem like you really know your stuff.

(1) Then you can ask for the PMI to be canceled when you have earned through payment or appreciation at least 20% equity

I never used the 70% rule, I figured all costs and then added in a minimum profit plus extras for unknowns.

Is it possible for you to offer something extra to make up for the lack of your credit being on the line?

A this point in the o/o, how can I successfully get an extra 2% to 5% off?

You could get the tenant buyer to pay higher than market rent, but it could be structured as rent and an extra option payment.