If you want to keep the tenant, I'd screen them like you would any other applicant before you close; if they don't pass your standards, have the current owner end their lease before you buy.

the cost went from a standard 10k fix, to 20k, killing the deal after we bought it.  

I replaced a 40 gal recently (this month)with new venting at about 25% of your cost (heater, venting, and labor) using a licensed plumber (not my handyman) but I have no idea what the cost difference between standard size single unit heater and the size you are referring to. 

I'm curious if anyone can walk through the calculations on IRR and CoC when an annualized pref rate is part of the deal.On a standard deal is the CoC usually the annualized pref amount so it's counted as just cash flow and not a return on capital? 

Once a Value is established you then evaluate the condition of the property to estimate the amount of Rehabilitation work required to bring it up to Market standards.  

Typically it will be 25% down and the standard loan paperwork (W2's, tax returns, etc) PLUS financials on the property (seller's Sch E).  

Standard yellow letters or are you looking for something more unique?

Good luck to you, I suspect you'll need it.I was under the impression the industry standard for PM collecting a percentage of rental income for said management was 8-10%.

Was hoping there was a brokerage in my area that had experience dealing with flippers and REO/foreclosure sales etc to learn processes and differences between them as opposed to standard home sales.

Some lender's have an application fee which is standard but it should be less then $500 and they should tell you in writing what it's for and in what circumstances it is refundable.