He didn't have anything funded on it and when the crap hit the fan, that large, national bank (along with many others) had balance sheet issues. 

New roof, carpet paint, flooring, windows, bathroom update, kitchen and a ton of cleaning and yard crap hull. 

Not only did the seller leave out the property taxes, they also did not include any management or property insurance.Regardless of if you use the BP spreadsheets or build your own, make sure that all the boxes are filled in or you understand how they are combined (e.g.

You don't want to put something that big on a stranger, maybe a family member combined with a property inspector would be okay, but be very careful about just trusting someone random!

And for many who have cash they get hooked to the passive nature of the business and to the returns that over time will usually out perform rental properties.Once folks have been through the rental cycle and realize how tough it is to be a landlord they start looking at lending its a natural progression.. of course many have a combination of both.. but I have seen it happen with great frequencies over the years.. my clients selling off rentals to put into notes.

At a 10% cap rate (adjust to your market) those repairs should justify a combined rent increase of $10K/year, $833.33/month or $138.88 per unit per month.  

It's a fine line but the combination of legal and physical improvement makes it problematic.  

@Steve Babiak I agree, that surface mounted looks like crap!

Well, credit is money - money that can be spent on anything from worthless crap that shines and sizzles or invested responsibly to grow and build wealth. 

If you heard the laundry list of crap I am doing to try and get one deal I am working to closing you would be appalled.