Contributions like this make BP a very useful tool.While I agree with most of what you wrote I see C/D properties expending an average of 40% of rents averaged out at scale.

It's a long story, but I suggest a running total of the expended rehab be promulgated in each monthly report.Regards,Charles LeMaire

The wealth is already growing organically and that’s great, but why then expend your time acquiring more and more actively?

I am SO tired of those trying to make me feel expendable because I'm over 65 and have underlying health conditions. 

Why even bother to expend energy on this issue? 

Had he stayed on track, I don't think he'd be dipping into hard money or secondary lenders.Although, maybe I'll qualify my earlier statement by saying something unforeseen occurred causing his friend to expend more funds than he was scheduled to.

KY § 383.585 Disclosure.(1) A landlord or any person authorized to enter into a rental agreement on his behalf shall disclose to the tenant in writing at or before the commencement of the tenancy the name and address of:     (a) The person authorized to manage the premises; and     (b) An owner of the premises or a person authorized to act for and on behalf of the owner for the purpose of service of process and receiving and receipting for notices and demands.(2) The information required to be furnished by this section shall be kept current and this section extends to and is enforceable against any successor landlord, owner, or manager.(3) A person who fails to comply with subsection (1) becomes an agent of each person who is a landlord for:     (a) Service of process and receiving and receipting for notices and demands; and     (b) Performing the obligations of the landlord under KRS 383.505 to 383.715 and under the rental agreement and expending or making available for the purpose all rent collected from the premises.

Any amount expended or loss sustained by an owner or lessee on account of the demolition of any structure must be capitalized as part of the basis of the land on which the structure was located.

His strategy sounds pretty good, because the people are calling him; he knows the max he's willing to pay, so he's not wasting any time with those that are out of his range, and if he expends a nominal amount of time, and even makes just $1000, it's still profit, with minimal energy expended.

Invest; Verb  expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.