If the cash is distributed across several accounts you can send screen shots of all accounts with a cover letter that says something like "see POF in excess of $xxx,xxx in the following accounts".

Not sure if it our dirt, or the moisture in the soil, or maybe the jalapeños and hot sauce we eat.   

I am thinking I will only owe taxes on the excess. 

When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or to refund to the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account that is specifically designated for future investments.

If it's an 80-year-old property I wouldn't be surprised at the excessive repairs.2.

I also add a automatic bath fan in all bathrooms to get that moisture out.

Changing floor plans or taking on numerous capx upgrades to purge the conditions might be an excessive start until later: zoning, permits, and 2nd egresses come to mind unless a basement unit can be added. 

However, we have found ourselves in an amazing opportunity to get into real estate development due to churches having excess land often in great locations that would otherwise be unavailable to the average developer.

I don't believe in excessive leverage.

Someplace that old needs a thorough inspection of the foundation,roof,electrical panel and wiring,plumbing,water heater,and HVAC.Especially in a harsh weather climate like Wisconsin or anywhere up north.You really wanna check for long term water damage to the foundation and base of the property caused by years of snow and ice, no moisture barrier installed,and poor drainage.The cost of repairing these items should be factored into your bid price.You didn't say what the after repair value of the property was,only that they were asking 135k.If the ARV is only around 135k after improvement costs then 100k and just cosmetic changes would be decent.However,if you find after a thorough inspection that the place needs far more work to get up to code and up to stuff,then you need to show the owner all the problems and negotiate the cost down to cover those repairs.