Also, an additional 10% early distribution penalty applies if you are under age 59 1/2 unless you meet the age 55 exception. 

@Elise Bickel mentioned a few.

So if all the things you've mentioned are taken care of, where would you spend your money?

That will decrease some of that subjectivity you mentioned.  

If it was spent before acquiring the property, the tax Court has mentioned the best you can do is take a deduction as Startup expenses up to 5000 and capitalize and amortize the rest. 

You need rehab money like Mike mention of 30-50k is about avg. 3.

As @Jim Adrian mentioned erentpayment had some issues but I also was not affected. $3/collection and you can set it so the tenant cannot make changes to the automatic withdrawal from their account.

My broker did mention the surplus market policies which I will have to pursue.

Not to mention the additional $5,000 to $8,000 the lender requires you to have in reserves. 

Yeah, the area you mention are $500K for one bedroom condos that haven't been rehabbed.