This seems like a very reasonable deal? Is there some hidden catch? Also, can anyone explain to me the $500 difference between buying first batch and second? It it simply because they think the difficulty will rise substantially following second batch? Just wondering. Thanks. Anyone have suggestions on hosting options? 
Yes of course there is a hidden catch...I was caught of guard as well by the price (lower than the original L3 at twice the hash power?). Its obvious bitmain is prepping to dump these on the market. Scrypt hash power will tripple in the next 2-3 months.
Don't forget that they are also taking advantage of the recent price hikes to make it look like this is a super deal. Dont think that this LTC price will last forever (though I hope I'm wrong).