Other factors could be lazy property management, competition from updated or cheaper units.

A lot of times you cannot view the property.

I'm considering making an offer on a property that is listed as a 2 bedroom 1.5 bath as a long term buy and hold property to add to my portfolio. 

By purchasing a multi-unit property, living in one unit, and renting out the others, you can cover your mortgage payments and start building equity while gaining rental income.

My issue is properties have appreciated a lot since the last one.

I recently locked down my first property as I start on my real estate adventure. 

This is where you divide your expected annual rent by your total cash into the property, usually for the first year (I would use down payment + all closing costs + any capital expenditures + carrying costs before being rented, if any).

Would you eventually scale down to fewer properties with higher cash flow, or continue holding indefinitely?

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Most will cover up to 100% of the renovation costs and 70-90% of the purchase price, depending on factors like the type of property itself, your experience, credit position, and the lender’s specific guidelines.