Don't be too quick to just allow anyone into your beautiful rehabbed property.

Then you compounded it by allowing yourself to be extorted in a "free cash for my keys" scheme.

But the high prices/taxes and my conservative estimates for the gamut of expenses and income don't allow anything to get close...

This allows you to withdraw funds only when they are needed (after you have found the property or are under contract) and save on some interest.

Instead get  a longer listing commitment and then if the seller wants expensive advertising you might offer in allowed in your state ( and with your brokerages approval) to rebate their advertising expenses at closing they pay for with legitimate receipts off the commission.This way if a seller pulls off the market,goes with another brokerage mid listing, or tries to cancel early etc. the seller will be out the money and have skin in the game.

My first deal is owner occupied to is allowed me to put much less down up front.

Two thoughts:1) If you are going with a conventional loan from a bank, you will need to make sure the lender is aware that the down payment is another loan and allows that.

Hi @Rick DoctorThe 2%, 1% or 0.8% rules are rules of thumb, something that allows you to determine quickly if a property is worth looking into further. 

If I agree to pay that fine, does it allow the seller to cure the title and issue a warranty deed?

I was with a bigger real estate company before I took a job that wouldn't allow me to actively be a real estate agent.