If you buy one fully themed, it is going to cost you upfront, but no real downtime to block off dates and lose revenue.

They all interpret codes differentily.So first permit is sanitary, I had to spend a little time with excavator/septic contractor on design during the winter down time,we had our design ready to go and had the permits without question.Next permit was land use.

If you make the tenant pay for this downtime, it's win-win; he gets to leave early, and you lose no rent.

There are also a vast number of transient subs who will say they were injured on the job just to get WC for the downtime.

If done right, you'll have very little downtime in between retenanting.

How much more downtime will the unit have by coordinating multiple contractors?

Plus we rarely have any down time between tenants. 

It makes sense for those that are scaled to a position of having multiple projects going on and have cashflow to leverage themselves against a few bad projects, down times in market, etc. 

If you think the cash will be sitting for any length of time then the Line saves you costs during the down time.

The RE market is a bit soft where I am going (very unusual there as prices tend to hold even in downtimes) AND REITS by all accounts that I have heard, are becoming overvalued.