I was in a doctorate program, but quickly burnt out working in trauma.  

However, from a flip perspective, when asking retail for a house, be prepared for a lot of "worried housewife drama".

Real estate has the potential to significantly outperform or underperform a mutual fund, the real question is how much effort are you prepared to put into it?

I just want to be thouroughly prepared, you know?

If I cannot negotiate the deal I want, I am prepared to walkaway from the building.There is a meet up this Saturday by @Juan Diaz in North Oakland.  

Yes closing costs like commissions, title insurance, closing doc preparation, 1031 fees are decuctible and reduce your net sale.  

Find out what local loan programs are available.

I know you mentioned they "accepted" your offer, but you should be prepared for a huge roller coaster ride on this one, it already seems flakey on the front end, furthermore, most of my unsuccessful dealing, were just that, unsuccessful.

The investment is quite different than the REITs from Rich Uncles, RealtyMogul, and Fundrise (AHP buys non-performing mortgages in bulk at a discount), but the minimum is lower ($100) and they offer "best efforts" redemption to get your money out within 30 days if you need it (you take a slight hit on the return rate if it's earlier than 12 months IIRC -- 10% or 11% instead of 12%, but still a relatively flexible program).

I would not count on this one, but hang in there and be prepared for the bank to come back and ask for fair market value.