Permits, utilities cut off , estimates . 

Just to be clear capex is large repairs like a replacing a roof/painting the building/unit remodels etc.

Does this approach cut into your return?

If you want to protect your investment, spend the time being clear and thorough in your scope of work.

The owner is around 65 years old and she doesn't want to use a realtor, doesn't want to be a landlord anymore, is free and clear on the property, and wants to finance the property for her retirement income.  

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien. 

@Matthew Paul @Russell Brazil @Ben McMahon @Ray Johnson @Dan Bernstein @Sam Lin @Bobby Montagne    Thanks everyone for your advice, it's very clear now. 

This way you will cut down cash flow but no problem with appreciation.

The property will not clear the liens processing office without notice from the city attorney.

I think the Perdiem is more like 59 a day but the establishment has a food and supply thing they do and offer to fill your cabinets for the 59 of course they take a cut also.