My banking friend mentioned that with new regulations banks aren't making these types of loans since the owner doesn't have enough income to sustain the loan.  

Now I'm not sure if I overpaid for the plumbing fix

Here is what we are estimating right now, so we would appreciate any feedback if anything is missing, not estimated high enough or much too high.Exterior- Roof, siding, lawn, driveway, etc. all in good conditionInterior- Demo $500 (removing carpets, flooring, etc.)Drywall Repair $1000 (various holes in walls and ceiling up to 1-2' across)Plumbing $300 (two new toilets, fixtures)Front Door Replace $300Electrical $300 (electrical box has a circuit breakers hanging loose)Interior Paint $2500Cabinets/Countertops $3000Carpet/Flooring $4500Kitchen Appliances $3000 (buying refrigerator, stove, microwave, dishwasher used)Totalling roughly $15500 and this includes labor cost.

I recently had some plumbing work done under the sink, but there is no air gap connected to that drainage line.

If not, try to get an engagement agreement signed with the seller in the position of acting as a mortgage broker, depending on your state's rules and regulations. 

@Orlando CestonaUnfortunately no because the IRA regulations prohibit the IRA owner to use any of the IRA owned assets for personal use.

I called several lenders and one was 75% LTV, one was extremely slow so I pulled the application, and another was 80% (who I went with).The refinanced property had everything practically new (wiring, plumbing, kitchens, bathrooms, decks, etc.) with few items less than 5 years old (roof, siding, furnaces/AC), but the windows were 10 years old. 

If you operate by strict guidelines as indicated in your state landlord tenant regulations you are neither a bad or good landlord.

Now is the best time for you to prepare yourself to be a investor by sitting down and learning all your provincial landlord tenant regulations.

I was wondering about water as the plumbing inspection failed (this is a HUD property) but really did not see any evidence of water damage/intrusion at all and I walked thru this with another agent and we looked very closely.