The only known situations where I was ever required to pay a loan fee upfront before funding is with my commercial lenders (banks, credit unions, etc.) on our 5+ units.

Now keep in mind these banks are usually lending on Experience first capacity second ( your cash) and credit score last and least important.

This is an average condition house for the neighborhood and area.I have set my screening requirements as:600-650+ credit score3 times monthly rentNo evictions, violent, or sex crimes6+ months of job historySome form rental references.I have an applicant who meets all requirements except I am unsure if he will have rental references because he told me he's couch surfing right now.  

And all of that can be done by a 1031 Exchange administrator of course...but that's if he wants to defer his long term capital gains taxes.  

.- I have a mixed use property with 2 commercial spaces rented for the last 2.5 years and 1 short term rental/residential space I have airbnb'd/lived in part time for the past 2.5 years- I owe about $110,000 and have about $200,000 in equity- My credit is 580 - 620 right now due to being laid off last year and missing a couple of credit card payments.

Of course, I have never met him in person - we just text and Venmo. 

Given the inspection findings, you have a basis to renegotiate the purchase price or request seller concessions, such as a price reduction or credits at closing to cover repair costs as well.To do a proper analysis on whether the purchase is worth it, you'd need to calculate the expected rent after repairs and the ARV.

I have taken some courses and am trying to get some more knowledge as I prepare to invest in my first property and BiggerPockets has been mentioned al LOT as a great resource to learn and make connections.

I've seen this happen... not between a borrower and lender, but in other business situations where an attorney brought a suit against both the LLC and the individual members of the LLC.Of course, if the lawsuit has no merit and is a pure act of desparation, it seems to be a waste of funds for the borrower when discussing options with the lender could work towards a viable solution.

I have good credit (730+) and solid income.I am currently lined up for a conventional loan with ~15% down, 6.5% rate, and low closing costs but this would use up most of my liquid cash (minus emergency fund).