(1.4x ratio and 73 cents on the dollar- value rises with less expenses in cap rate analysis.)  

Although some people say that they don't know a single instance where this has actually happened, if banks tomorrow decide to call some of the older notes when interest rates do rise (and they are already rising), I won't be surprised.

CMA's are on the rise in all neighborhoods.  

If the soil is contaminated it could cost considerably more than $5K to remedy this.

I suspect there is more demand vs. supply for the cheaper units vs the top end, but there are other considerations, such as quality of tenant and property values.  

Seeing as how I assume you would never have the major expense of replacing a roof or maybe even an HVAC system as some high rises may not have individual HVAC units for each apartment it seems you could allot less to this.

If not, then you may want to consider as this would increase your tenant pool considerably.  

My question is if he paid a house off all cash will he be able to refinance if so what would he take in to consideration when he visits the bank?  

Or just bad business models that can't keep cash flowing against rising rents?

(In addition to most likely not taking rehab costs into consideration).