I am anticipating a softening market but I’d like to see if I’m being too negative. 

if you have a disposal, dishwasher, fridge, range, microwave, washer and dryer all provided, you will likely have more repair bills than only providing range and fridge.Capex will depend on both current condition and anticipated hold.  

But the market's tougher than you anticipated.

I guess what I am saying is if I had $1,000,000 per month coming in on 3000 properties that I had loans on and netted $10,000 out of that I would consider that a nightmare of leverage and by definition a "house of cards".Back to you...if your happy that's all that matters...Right :-) Our P&I is $7,400 a month - so we would need 75% of our units vacant to not be able to make a mortgage payment (currently 0 are vacant except 2 of the units we bought last week and I anticipate leases on those this weekend).  

However, our best practices are to ensure our investor receives their payment, and if we are in a default situation we may choose to foreclose on the borrower so that our investor gets their capital and anticipated return, and we still effectively monetize the back end of the note. 

The current rents are $500, but the anticipated rents after reno are $1200.

When I read it all I was thinking is that Utah is becoming a sellers market with an anticipation of prices going up 4% possibly.

Sooner than you anticipate!

People lose their butts whenever they don't get good deals, or are over leveraged and get stuck with a property longer then they anticipated and can't afford to carry it. 

In other words, you have only held title for a few months, but you did have the intent to hold and then got an offer that you did not anticipate or expect.