If this is a low end rental I'd make sure everything is clean and functional and use as-is.If you are looking for something a little better maybe leave the cabinets in place but install new laminate counter tops, sink, faucet, and mid-grade appliances.

You allocate that based on square footage, so if all three units are the same size each gets one third of the cost basis, but if the main house is the size of the other two units combined then it'd be half to the main house and a quarter to each smaller unit.

I have always believed that timing was more a function of my personal situation than the market.

I think their best bet would be to find a way to combine that unused space into one of the current units.  

Finding the right home is a combination of patience and preparation, so if I were you, I'd talk to a lender now so you're prepared when the right opportunity comes along.

I just keep a running sheet for each property (you could add an additional column to specify unit). and use the sort function to group by types of expenditures, date, etc., depending on what my purpose is.

It means they are not operating the property correctly, not reporting their expenses properly, they are owner operators and do everything themselves on the cheap, or a combination of these.Put together a pro forma based on how you will run the property so that you can get more comfortable with your numbers.  

Unfortunately the economics combined with the compliance limits non-accredited investors to one of the following types of scenarios with things as they exist today:1.  

If you require direct debit, that requirement functions another screening measure.  

Great leaders build something that can function equally well in their absence.