@Joseph Gamatoria  That's correct -- the broker (who also owns the property management company) had full access to actual operating data but chose to omit these larger expenditures with the justification that they were non-recurring and therefore wouldn't be representative of future operating costs. 

Often times when you buy low, it can cause the underwriter to kick-back for a valuation recheck and justification for the difference between your original purchase price and the new appraisal.

I knew you'd reply, LOL and;I agree with you.I believe BoA requires the pre-qual, not getting the financing from them.If a seller has had bad experiences with any lender, they will then have a valid justification not to use them, not to require a particular lender.

At one of my properties I'm planning on updating the main electrical boxes to 200 amp from the current fuses but not because of tenant appeal (units will remain 2 prong plugs & GFI), Justification for the upgrade is that I can get my insurance cut in half with the upgrade which will pay for itself over the next few years.

At the very least if you are justifing your offer by what the current owner is asking then you will probably wind up overpaying (IMHO).Good Luck

This is why new options should reviewed by legal and tax counsel and stay with the truer types of options, without contingencies or requirements by either party and stating what the intentions are of both parties with specific justifications as to why the contract is not a purchase agreement. :)   

@Nicholas Hubbard A couple of suggestions on house to invest $5K just if you're new to the industry.1.

There was constantly some justification regarding why your deposit wouldn't receive money.

I’d love to see the justification for that statement.

Most cops will take the report and begin watching the property to see if there is any justification and to make sure you aren't a person with an axe to grind against this person.