Out-of-pocket capital improvements and repairs anticipated during the first year12. 

Full stop.An investor can buy undervalued RE, do efficient improvements and create massive value. 

For my short term rentals I am really going to focus on adding improvements that will increase my daily rate and guest experience.

The real issue that can and has reoccurred more than anything else IMO is that the original seller cannot just waltz out and get a new loan after their credit has improved.

The quality I can improve but once the limbs have hit 1 inch the value is impaired moving from A to B or lower quality.I’ll process logs, rough sawn, kiln dry, planed.  

To this very day we are still taking on new clients and are doing just fine, so it goes to show you can’t please everyone but that doesn't mean you can’t still do good business and improve.

I am not looking to make major improvements, but I am looking to enter and secure it.

Over the past 6 months I have been really researching and devoting myself to self improvement and learning.

It's all about the location, you might be able to buy a cheap house, but if it's in an area with nothing but other cheap houses and in an area that is "not desirable" you're not going to make much money on it, either in improvements or rent.

First you need to learn to separate the following:Maintenance: usually things related to wear & tear or tenant damage.Repairs: usually broken items like doors & windows, caused by tenant or nature.Capital Improvements: usually expensive things that wear out: hot water tanks, furnaces, roofs, etc.The seller is correct that Repairs & Capital Improvement items should not be a factor for awhile (ALWAYS get your own inspection to confirm).