Hi Rachael, Good question.Yes, you do need to worry about UBIT (and actually also UDFI which triggers UBIT as well, on leveraged investments which this one most likely is).

If the numbers work pull the trigger.

Should I work on pulling the trigger on this place?

Whenever I first start working with an investor it's not uncommon for me to send them less than ideal investment properties in an effort to find out what they typically pull the trigger on.

I'll be happy to learn from those groups, since want to learn about local laws for tenants and ensure all of my bases are covered before I pull the trigger?

It's frought with risk and doesn't have a huge risk-adjusted upside so we are wondering if we should even pull the trigger on this one.Rehab ROI Scenario AnalysisZillow Data for 607 Highland St Cramerton 28032

I don't think sub metering would trigger inspectors to want sprinklers but other work.  

One thing that stops me is what amount of renovation that triggers upgrades in the building.

Are there going to be any significant tax triggers?

So in terms of having enough capital to pull the trigger, my answer would be yes you do.What I would probably do is, if you don't have one already, go get a couple of credit cards right after you purchase the house.