Usually the biggest thing with a borrower is proving you are actually their new Mortgagee and not a wholesaler trying to work with them.  

This gives him an incentive to get a lot done.

I understand that there may be dodd-frank issues there, but how does one create incentive for the Tenant/Buyer to where they are somehow chipping away at the price of the sale.

Since vacancy is your biggest enemy in the rental business that can be a big benefit. 

As a newbie, one of my biggest fears is underestimating repair costs.

Let me know if any one that is selling occupied house/condo gives the tenant an incentive.

So if a property is closed on, the standard 6% would be paid to the agent(s) involved and paid by the seller or by us if we plan on offering 'no closing costs' as an incentive?

My biggest perception of value was dressing the front elevations with front porches.

Need to make sure you're taking everything into account- underestimating turnover expenses - this is likely your biggest expense on an annual basis.

But in my city, once the city identifies a section as a place to rehab they offer incentives for businesses, developers, and investors to go in and make the neighborhood better. then the city goes in and upgrades the infrastructure; new roads, sewers, parks, community centers, etc.