If they're MLS listed, expect them to sell the next day for 10% over asking price. 

I wouldn't buy anything at that low price unless I'm expecting to do a full gut rehab.

The property under contract:  I found a 3/1 930sqft pre-foreclosure bungalow off MLS listed at $185k, I am using conventional financing but was able to beat out a cash buyer by asking the wholesaler what profits they were expecting to make and cutting them a $10k check and entering into a contract with the homeowner directly at $175k.

If that were the case, I would expect more in the 10-12% range.

I already do that in various aspects in life - helping others without expecting anything in return.

I have purchased several homes and typically the settlement fee from the title company is $500 +\- $100, I was expecting a similar cost.

I expect you'll be around 4%.

Do you have any stories where your property manager really exceeded or really fell short of your expectations?

It has gotten to the point here in the Seattle area where listing agents almost expect waived inspections.

obviously the tenants want to get a dog and not pay a fee or extra rent...I doubt they are expecting you to reduce the rent. your choice should be based on the unit itself. got carpet, a fenced yard, close neighbors that might complain etc.