The main problem with old bathrooms, at least for me, is that all that tile typically looks super dingy.

This is super helpful @Masashi Borges-Silva!

@Tanner GlennThat example is super helpful to demonstrate how this risk plays out for the lender.

Your story is super relatable. 

Carpet is super simple to tear out.  

Originally posted by @Bob Bowling:@Chester Transo You are looking at cap rates incorrectly. 

It’s just that the photos online are all super close ups and I can’t tell if my little specks-of-dirt-like bugs are the moth-like looking drain flies.

When you exit a deal, what normally ends up happening (like Tom Brady keep winning more Super Bowls) is that you go into two more deals (with now double the amount of capital) and you will likely find that with those new K1s you could result in you having way more passive losses you began with If you can see where this is going... yes, experienced investors with a lot of capital deployed might have 500k-1M+ suspended passive losses and have not paid taxes in years and do not appear to pay taxes for years!

Its basically like I have a super large 5th bedroom.

What one person thinks is remodeled and nice is a 3 star stay for others.Sometimes it is a big thing like a dirty house etc or sometimes it is a bunch of smaller things like 3 forks, no bowls, poor quality linens, that sort of thing.My charity booked a large STR for a 2 day board retreat a few years ago.