That's a business risk / underwriting component just like any other R/E deal where it's not an immediate sale transaction.

I am sure the Beverly Hills, Rodeo drive, or Santa monica buyer will have different tastes than a buyer in inglewood, eagle rock, or el monte areas.In my experience it has been up to $35-50 to replace roof, siding, exterior paint, landscaping, Hvac, plumbing, and the major components along with the costmetic components mentioned above.

So far we have used it mostly for Tenant Management, and still use a tenant screening component that the our local landlords association offers, and do accounting in Sage/Peachtree which is what we use for our 'day job' business for over 20 years.Things we like are: price for the number of units, quick view of rents due/paid, great 'to do' section tied to each property/renter (for each unit of a multi), etc....

Assume that the work that M performs does not constitute an improvement to the building or its structural components under §1.263(a)-3.

Some sellers just pass on these hot potatoes, having milked the property by keeping all the rents and not plowing much back into it...Then the exit strategy is to sell to someone who may not recognize all the deferred capital expenses.Some ideas for avoiding the hot potatoes (where everything is at or near the end of its useful like) might be looking at age (but it sounds like most listings are a bit older), so you might only look at those properties with updated major systems and components (HVAC, plumbing, roof, windows, insulation etc). 

@Patrick Henshaw,While I can't speak to the legalities, I can speak to the design / engineering issues.Yes - if the expansion device is capillary tube, overcharging is detrimental to performance.

Some components that come to mind include: Shower-Tub-Vanity-Backsplash-Cabinets- And anything else I forgotThanks again everyone for your input

In my opinion, the most important rehab components to pay attention to are the one that are most expensive -- foundation/structural, septic, mechanicals, roof, windows, etc.

The key component to the non-recourse is what is excluded and becomes recourse on default?

From what I can gather, a primary component to success in REI is being able to find a deal.