As Elias mentioned above i think you're insurance costs will continue to rise and while the property may appreciate as well i don't think juice is worth the squeeze.

What is the interest rate on borrowing compared to the rate you are earning, then take into consideration the tax consequences. 

Inflation will rise 4th quarter as economy speeds up or government starts printing cash to pay debt. 8.  

Market Fluctuations – What if appreciation stalls, or rates rise, impacting your refi strategy?

Also if a unit is renovated then the rent can be increased by a considerable amount. 

@Jerry Chilimidos Yes, you can use your SDIRA for hard money lending, with income going back into your SDIRA tax-deferred or tax-free (unless the activity rises to trade or business, then you might be exposed to UBTI).

I wouldnt give any consideration to what the seller needs in order to break even in determining the purchase price.

It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

If this is your first property, you could consider starting with a smaller apartment building and going after the opportunity first, and the property as a secondary consideration.

Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house.