For example, suppose this building, being older, needed significant structural work to reinforce floors, repair exterior brick work, replace windows, repair roofs, and all of the interiors needed to be heavily turned (new countertops, sinks, appliances, showers/tubs, toilets, flooring, paint, fixtures, etc) to hit the pro forma numbers.I'm poring over various spreadsheets to analyze a deal (like Michael Blank's SDA, even though this isn't a syndication) and Joe Fairless' free simplified calc sheet, but I've got some nagging questions on when to actually use certain values... hence the above scenario/question. 

.), as well as my connections I get at cost being a manager for a exterior restoration company.

Often you can pay a little extra upfront to reduce or avoid pre-payment penalties.If a conventional loan won't cover rehab, consider bringing in 1-2 partners who can cover it.As far as a quick evaluation, what you said is close, but technically what you want is: annualized gross rent (which already excludes vacancy, as opposed to potential rent, which does not) minus 50% for operating expenses. 

If it is sagging on one floor and not multiple floors, it most likely is a joist issue as opposed to the entire property settling.  

I am meeting with my first potential seller tomorrow for an exterior inspection and beginning of our negotiations.

This method calls for NOI (Net Operating Income as opposed to Yearly Income).

Long time BP podcast listener, first time posting...I'm under contract to purchase a primary residence in Bergen County and there are significant exterior defects.  

While we do not have a lot of cash on hand that we can use right now (around $30k), we would qualify for at least a $80k HELOC, and I would also not be opposed to loaning against my 401k as I have maxed that out every year since I entered the work-force after college (10 years ago).I'm continuing to read these forums and just started listening to the podcasts this morning. 

As opposed to buying a building which requires renovations, which we all know, always lead to the unexpected surprises located in the walls or foundation.  

J,I agree - there are some savings when you own one building as opposed to 20.