Sounds like a good bet to find one that needs renovation?

Here’s how I would analyze it:Vacancy - $95.1 (one month rent) 8.34%PM - $115 (Even if you self manage) 10%CapEx - $80.5 (7%)Repairs - $92 (8%)Total = $ 382.60Total Expenses = $382.60 + $266.67 Taxes + $70 Insurance + $526.09 P&I = $1,245.36Cash Flow = $1,150 - $1,245.36 = - $95.36 (Negative Cash Flow)Also you did not include Closing costs for the Purchase and Refinance.  

I think you're thinking of what people like you or I would do, but, at least Vail, is a totally different customer. 

Totally doable.

@YiBing T.I totally agree with @Phil G. 

I was totally thrown off when that started happening.

Should I just assume a total tear out all the way down to the studs?

Totally depends on your goal. 

If your clients potential property is not right on the corner or next to the corner with a cross through from the corner tenant then likely you are not getting much cross traffic from both roads of traffic.You also need to look at where the property is located.A road could have total traffic counts of 30,000 cars a day but that doesn't mean both sides of the road are equal.

I would probably hedge my bets: sell the ones that you can get the most profit for, keep the ones that are in areas with more potential appreciation.