How account for building code risk on old apartment

[Dave Clauson]

My partner and I are looking at a 100 year old apartment building. It's in a great location and under market rents. We are a lot of potential to update apartments and raise rents to market. The buildings have a good amount of deferred maintenance which we can estimate. Before we make an offer I'm trying to figure out how to size a risk. If we ever have to pull a permit for rehab we will need to bring the property up to code. That scares us on a 100 year old building as that could be huge dollars. How have you accounted for that risk? Thanks for any advice.