Then they were illegally doing Property Management, and suspected of skimming funds and overpricing the repairs they didn't disclose. 

@Brandon Hall  could provide you with definitive answer, but I suspect things are not that much different for you than us.If we are talking portable/window AC unit, then you could probably expense it - I would in Canada, particularly if it were only a few hundred dollars.If you are talking central air or a mini-split unit which is fixed to the house, then it is a capital improvement and you will need to add it to your cost bases and depreciate it over time.

@Darrin Carey  we pay a little more in Orygun for roofs  but generally 250 a squareand 225 for new construction.now my business partner that lives in Kahala ( Honolulu) just got a bid for 46k to replace his roof.there is a big Lanai area .. but I suspect the price is about 3 to 5 times what you pay.but that's a 2 million dollar 1700 sq ft home...

I suspect @Michael Paris is right.

Try getting harder numbers on your suspect properties..

should be a slam dunk for any HML... 66% LTV... they will usually want a few buckaroos from you so you have some cash equity other wise pretty vanilla deal.. you construction funds would come in the form of draws with inspections I would suspect.

I suspect the quoted expenses are lower than actual expenses.

I suspect I would leverage that one on new property going forward in some manner, but thought I'd see what others have done.Thank you!

Based on what you've said about your background and your time frame, I suspect to get this deal done you'll need to find a Joint Venture partner. 

Las Vegas has done well and I suspect Phoenix and cities in Florida to have done well, but again these returns have in part been due to healthy corrections after the crash.