In general they often leave out significant expense items, such as repairs. 

When buying new properties try to stay in the areas of growth and choose growing population and diverse economies.  

She quickly ordered an inspection and sited 3 very small items which have been rectified.

I don't disagree that it is a huge budget item.

One guideline I use says that if the rent is $1000/mo, then the most I can pay for that rental (including any renovation) is $80,000.One caveat though - if you purchased that $80K property and it had plenty of deferred maintenance (needs a roof, windows don't work properly, old HVAC, galvanized plumbing), then you would need to have these items fixed prior to purchase or factor in this maintenance (pay me now or pay me later...).  

The first few months, she had to sort through what was for what, and we went through a few items, but now she knows, and she just logs into my accounts at various places and can get all the info she needs.Trust me, unless you LOVE numbers, get a bookkeeper.

@Andrew JohnsonI agree - I am a big fan of tax diversity as part of retirement planning.My question, though, is essentially this:Say I have a client that has $300,000 that is 100% invested in securities (no real estate) and I have determined the best asset allocation for the client is 60% stocks, 40% bonds.Then s/he inherits a $200,000 residential property and decides to keep it as a rental unit.

We have a plan in place to put some money (5-7% of the purchase price) into it (mainly cosmetic items) to be able to drive higher rents in about a year.  

Only moving 2 walls, moving kitchen from one end of a room to the other, and rebuilding a deck, but other than those two items it is all just finishings.

When handled properly, it should keep your business acquisitions away from your personal items.