I haven’t been to property but one time this year and that was drop off renewal lease and change air filter.

Atleast I can see if I win or lose right off the bat.

We're seeing an unfamiliar clause and wanted to verify that we're not making a mistake.The broker asks for a $500 fee (they say they reserve the right to retain/charge in its discretion, in any non-closing event to cover for its services).Is it common for a broker to ask a $500 fee out of the EMD in case we back off the offer?

Meaning we aren't re negotiating the rent but if you renew you could get $x off the next month.  

It will need to be paid off.

Yes, you should add your fee on top but make sure you have a marketing clause in your P&S Agreement with the seller allowing you to promote it.

.* I am only owner financing properties I own outright If you have low interest loans on some properties you may be better off selling those with wrap around financing at twice the interest rate being paid and earning the “differential”.  

You are better off budgeting money for maintenance and capital expenses and keeping a reserve in case issues arise faster than your budgeted money gets socked away from incoming rents.

I understand that paying off a property means positive cash flow once rented.  

It is currently off market, but the out of state owner is willing to sell.