They hope to do PM as a loss leader to get deals down the road.That isn't my business model and never will be but I understand those who do it.

In 2012, I take a $30K net loss from real estate operations.

That is based on the lease the new tenant agrees to in writing and executed.It sounds like to me a bunch of key items on this property are being left out.

Generally, closing cost items are negotiable and stated in the purchase and sale agreement.Each locality has its' customary division of closing costs.

Apartment housing is not a discretionary item like hotel rooms are.

With 2 months deposit , you can evict them for non payment  of rent and you have the deposit to cover losses .

Failed (Failing) institutions are a thing of the past for the most part and any bank failing, would more than likely be acquired by the FDIC and sold to another bank under a loss share agreement with the acquiring bank.Your first "reason" contradicts your statement.

Now I am selling my stocks at a loss to get my roof replaced.A great property has come on the market fitting all of my criteria, all I need is the down payment.

.,  Further, buyer agrees to indemnify and  hold seller harmless from any loss or injury occurring on the property.   

I only consider fire and water flood an emergency(a snake once too), most items can wait until I call the owner and get an approval anytime there is a repair.