For example, the stairway is not level and you would have to scrap the house and rebuild to live here.

Upon move-in, appliances, cabinets, floors and walls all had built-up grime and residue from your habitation of the home.Infestation of bugs, pests and rodents-There was no attempt to treat the house for pests, as evidenced by the more than 15 spiders we have already seen in the basement, and the live, active wasp nest in the patio fence.Floors, stairways and railings in poor condition-The carpets are stained and smelly.

I assume you are probably losing a few of those bedrooms for living rooms, kitchens,  hallways, stairways etc. if converted from 2 to 3 units.  

you know who he is right or maybe your to young :) Didn't go mate,In Toledo for a week in early July.I don't know Robert Plant and am disappointed that I don't know of him lol I grew up with my mum being a clean freak throughout my childhood so she would clean all day and listen to ABBA, Boney M, Bee Gee's, The 4 Seasons, Fleetwood Mac, Rolling Stones, Hot Chocolate, etc...Wish I was born earlier mate70s and 80s music is the by far the best IMO lol lead singer for Led Zeppelin  watch  DC honors U tube with Nancy Wilson singing Stairway to Heaven she nailed it. 

They required a photo of my entire interior stairway to see if it had a handrail. 

Here in the Pacific Northwest any exterior (stairs) wood  rots quickly, so I choose to put my stairways inside.  1000sf for cars, 1000 sf on top, three rooms and full bath.

You should be able to put them up on the exterior of the property in the public/common areas - parking lots, stair ways, and hallways.

It amazes me nowadays how people will throw money into a market and not spend any time in it(pre purchase) then wonder why it didn't work out.we literally purchased our second stilt house by walking up our stairway and the owner (of our now second str there) was walking up there stairs and we struck up a conversation and purchased it off market.My advice, allocate some of your investment funds to knock on doors and hang in the area you buying- its priceless.

Additionally, if their capex budget was only forecast for 5 yr hold, and they are now anticipating 10 yrs, they may be seeing roofs, exterior repaints, other exterior repairs (stairways, railings, parking lots) that they assumed they wouldn't need to address, but now need to.Things to look for: positive DSCR TODAY, not on pro forma numbers.  

Converted the stairway into storage for the upstairs tanant.