Is it standard for HMLs to ask for a one-time deposit of $3500 that includes: 1) evaluators going out to property to determine whether it's a good deal, 2) enrollment fee and 3) "skin in the game"?

If you let something like this get under your skin, it will undermine other things of higher priority.

We live within a mile of the beach, so moisture and mold can be a problem.

I am perfectly open to skinning the cat in another way if it makes sense.As far as attorneys, I have a fantastic real estate attorney who I have used on all of our family purchases for over 17 years.

Is there a foundation issue which is causing the water/moisture mold?

RE issues don't disappear  like skin rash does. 

If not a lot of equity then can still use it as down payment/reno costs2) Hard Money Lender - The one I use doesnt require you to put down cash but will put a second position lien on your personal residence as your "skin in the game" - So if you dont have a lot of cash this is a good way to go.

the major difference is those investors entering the space ( rentals) are far more qualified and have far more skin in the game than in mid 2000's  this alone makes for a much stronger over all mortgage market.

As a buy and hold investor, I don't like them as they get wrapped up eventually due to moisture/water.

If I was doing business with you I would either move it elsewhere or send you oddball sales prices just to get under your skin!