I had a pest control company come out an give me a quote of $1,200 for bat exclusion.  

This is right from the IRS website.Qualifying for the Exclusion In general, to qualify for the exclusion, you must meet both the ownership test and the use test.

Many of the multiunit properties I see (I am a Realtor in Las Vegas and my practice is almost exclusively remote investors so I am always looking for properties that meet the dual goals of profitability and appreciation.) in Las Vegas are not in good condition and require significant upfront capital investment.

Now don't get me wrong, I'm not saying that real estate should be an exclusive industry where only a certain elite can get in.  

You turn and give him a lease that covers your payment plus a little extra, plus an exclusive option to buy from you at $120k for 12 months.

Some have better quality schools than others, but there are properties that will cash flow, at some level, that list in those areas.As for realtors, yes...you can work with multiple agents, as long as you don't sign an exclusive right to represent buyer's agreement with any of them.My advice, narrow down your focus around the properties you are looking for...size, configuration, max purchase price, max rehab budget.  

., I do almost exclusively 15 year loans. 

(One could also be of the opinion that these restrictions are simply helping rich keep getting richer to the exclusion of the little guy... but that's a different discussion) Have you considered doing funding through a peer-to-peer lending site like Prosper.com or lendingclub.com?

Make sure all the rodents are out and then do exclusion (identifying and sealing all entry points).  

I'm planning on renovating as quickly as possible and living in one of the units for 2 years so I'm eligible for the $250k capital gains exclusion.