Completely demo the old interior, nasty dry wall, and false walls.

If there's no rot, it is possible to pull out the drywall and insulation and dry the place out. 

That property you thought was a higher cap rate in another market not local to you is now a dog sucking the cash flow dry and you might even have to add money to it just to keep it afloat.These sellers tend to slam tenants in and there is no long term history of occupancy at the building and payments on time by the tenants.

With the dry ground and soil conditions, foundations tend to move quite a bit.

Side note; trying to collect a pet deposit from 5 year tenants who have already been there with a pet is like trying to stay dry after you jump in the pool.

The only thing I heard is the lender they had lined up saw in the MLS before they could delist that it was listed at at $3mil and said no.The lender could be using other peoples money, split that 25% commission with the agent, investors are hung out to dry, lender-broker say oh well that happens sometimes.

Like I said above, limiting to “VA-only” lending would run dry of talking points pretty quickly.

@Carol Kotchek, There's a couple different questions and answers in your scenario that keep it from being cut and dried.1.

Our crew has taken the property down to the studs and we've been drying it out for over 2 weeks now.

Be prepared to not get paid much for a couple months while you get things going, and then be prepared for the market to change and give you a dry spell.Some common expectations with having a RE license is that you'll work in a professional industry full of professional people that treat this like a business and treat colleagues as such; However that's not really how it goes.