@Craig Clark, if you feel like you have found a diamond in the ruff and your resources are lacking in a few areas, you still should be able to find a partner, if you feel the deal is good enough head out to your local REIAs and connect with other investors there who may want to partner with you, if the deal has enough merit

If it was a written arrangement, you could weigh the costs of the claim against the merits of the deal, but seeing as it's verbal, you're in the dark.I would NOT take the sellers word for anything - they're not even smart enough to have a written contract and entered into a verbal one. 

Of course, there are ways to make money in any market, but I think we're talking about the passive buy-and-hold investor.The system would take demographic, economic, and sales/rent data to allow you to start from the whole U.S. and then filter down -- to very specific small areas -- that meet the requirements for your investment objective and merit a closer look.

It may sound like I am against your idea but I am not if you can convince the wife of its merits.

Of course, there are ways to make money in any market, but I think we're talking about the passive buy-and-hold investor.The system would take demographic, economic, and sales/rent data to allow you to start from the whole U.S. and then filter down -- to very specific small areas -- that meet the requirements for your investment objective and merit a closer look.

She earns a little over 2x the rent, which would not qualify her on her own merits as we require 3x.

A thing I’ve not done but I think has merit for risk mitigation is to own a variety of kinds of properties and own them in more than one economic region. 

These repairs cost a static amount independent of the income of a property.The % may have some merit when initially vetting a deal, but it should get much more specific to the property during due diligence.

My question centers on the merits of doing a cash out refinance on a rental property that I originally paid cash for.

My lease states "written permission" by the landlord (text messages are not always valid for that criteria, just an FYI) and a "right to rescind" which means if the situation merits (i.e. the other tenant complains) that the landlord can rescind that permission with proper notice to you.In short, you will have to take it down if the landlord states you must.