They also, must be able to increase $200 after property is stabilized.You did not indicate how you were financing the acquisition and Rehab part of the process.  

We fully remodel units after purchase, before they go on the market, and build those capital costs into our cost of acquisition such that we are "buying right".

My company recently purchased a 2+ acre residential property in Oregon with a 4 bd/2 ba home on it and paid off the mortgage that it had as part of the acquisition.

Liquidity and availability is important for an acquisition account or emergency fund, but not long-term.  

Use his money along with another Hard/Private Money Lender to pay for the acquisition, rehab, closing/holding costs.  

I started by buying a few NPLs and doing the workouts and that forced me to create a platform to repeat the process on latter acquisitions.

While your point about paying above market value is theoretically possible, in practice it will never occur as those factors contributing to local acquisition prices and the market CAP rate will also factor into our risk analysis (local economic trends, clientele, directional move of the neighbourhood (improving/deteriorating) which determines the level of return we would require from the venture.

With the older homes in this town, there's a lot of opportunity for forced appreciation, equity acquisition and cash flow.

The access to ask their CPA specific questions regarding their situation, planning and potential acquisitions/disposals.  

However why not use that 10k and make a return today by having better reserves to get better lending on another acquisition.