Asbestos suspected, is the deal worth it?

[Michael King]

I'm getting close to going under contract for a 4 plex built in 1950. The seller gave me his inspection report from 4 years ago when he bought it, and the inspector suspected asbestos floor tiles in the entryway. I know the stuff is perfectly stable if left untouched, and if you want to remove it you better do it right...so that said, I'm thinking that IF it is asbestos, I'll leave it in place and carpet over the top of it. 

If it was you, would you run away?

The deal: 4 doors, 3 of the 4 have been updated, sale price $320K, rent total $3175. Almost 1% rule. There's room to raise to maybe $3300-$3400. All things considered I'm seeing around 15% ROI without a PM, and I think I'm going to tackle that part of it. Cash flow will be a little over $1000 a month. I'm putting down around $40K of my own hard earned, and a combination regular 30 year finance at 4.85% ($240K), and the remaining will be a revolving commercial line of credit at 5% that the same bank is giving me....NICE! Some deferred maintenance - a couple of cracks in the basement, no problem in my mind since they're vertical and don't seem to have shifted, and the AC units are older (up to 29 years old, believe it or not). I get it that lifespan is usually around the 10-12 year mark. Good school district. If I have my ABCs right, I'd say a C property in a B neighborhood? Haven't quite got the handle on those terms yet...but it's a good neighborhood I do believe. Anyway how does it sound? I'm terrified of buying an 'older' apartment building in a suburb I don't have anything else in.

Thoughts are always very well received, good bad ugly. This is such a great forum.

Mike