@Paul Bryzek There's a triplex here in San Diego that has good returns but FHA won't lend due to its condition.

Keep making money until things improve, and the value hopefully returns.  

Knowing what you want to invest in is important.What deals and markets and returns are you looking for, and also the type of tenants you are looking to serve.

Your goal is to maximize your return, not win every battle.

It didn't say returned check, it says stop payment.

I don't have a W-2 job nor tax returns from the last two years to be able to pull the mortgage under my name/credit/income.

The mortgagors reported the mortgage interest on their returns, which excludes us from being able to capitalize the same interest on our returns.There is more research being done..we shall see what becomes of this situation.Another quirk in this situation is that one of the properties we signed a lease agreement with permission to upgrade the property.  

Personally i wouldn't do it with that kind of COC returns.

I would first focus on items that are going to get an instant return and then take care of other upgrades that while important do add value to the tenant or reduce your expenses.

You'd have to gamble a little bit by being out of the area but I would go for it rather than a significantly smaller return in a local area.