If I borrow from my bank, I can achieve better rates and reduced closing costs.

Over the past 2 months, I've implemented the following changes that have turned this guy around 360 to where he is a ROCKSTAR now:Base pay was reduced by 40% and commissions were doubled. 

Suburbs are better- but rent reduces as well.

I think if you're comfortable with it and your screen your tenants well, it shouldn't be a problem.I think reducing sob stories and tenant drama has more to do with how you screen your tenants and how you "train" them so to speak.

I was told I could call and get the Mortgage reduced.

Same day auctions drastically reduce the pool of potential buyers (your competition) because of all its stringent rules.Therefore that is where you could find your best deals.

When we establish minimum requirements for screening new tenants, it is to reduce the chance that a tenant will be a problem and to reduce the chance they will default in paying their rent.

I hear too many things about the benefits of reduced risk for the sponsor, without any regard to the responsibility that comes with that. 

I would see if the bank will allow that money to be placed in escrow, IE you are borrowing 200k for a house that costs 240 and putting 40k down, seller reduces price to 215 to allow for repairs, bank loans you the same 200k but puts 25k of that into escrow to pay for repairs, you show up at closing with your same 40k plus 175k from the bank = 215 new purchase price. 

Structural Engineer here... epoxy injection is a crack repair (patchwork) and sump pump will reduce the water table around the perimeter of the house.