People can say what they want I've negotiated down to $5,000 for a non-performing assets. 

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

@Fred Heller I think there has to be some consistent job history.

Perform your due diligence as always. 

If you don't show your value by being consistent and engaged in the meetups, especially when you don't have demonstrable skill in profiting from real estate deals yet, you are behind the curve.

That would be far cheaper than not being able to perform and ending up in a lawsuit. 

The option is in effect only as long as the lease is performing.  

In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? 

When I do modifications, I usually like to set up a tax escrow as part of it, but the additional servicing cost and the borrowers past performance in paying taxes without escrow has to be considered. 

I haven't gotten my businesses consistent yet (constant deal flow with flips, same routine throughout the week), so it really varies.