If the house has all major components in working order a few cosmetic items doesn't make it not livable.

And addressing my item #1 comment, almost always, when a "distressed" homeowner is approached, they initially are grateful to have the loan brought current, but before long they forget the circumstances they were in and you become the bad guy that stole their house.

But you do need to give the deal items for worthwhile info.  

Anyone that has sold items privately would have countered any offer. 

The property taxes will be on his Schedule A during the time the property was his primary residence, assuming he itemizes.

I haven't filed a claim all these years but insurance is for the what-if and to be used for the high-ticker items, but chances of damages exceeding the 5% is low.  

Incurring losses every year will mean that the losses will be suspended and carried forward and will offset future passive income.

There are a lot of options out there.Some of the most useful items BiggerPockets members have identified are features that save time so they can spend time working on their next property.

Of course you can get discounts for having certain items FULLY updated, like plumbing.  

I KNOW I am not up to Accredited.It seems to me to be "backwards" thinking that there is LESS risk to a 'novice' in a FUND since the risk is spread out over many Notes and professionally managed, whereas an Individual Note seems like it would carry WAY more risk, especially picking the 'right one' for your investing goals, budget, etc...?