They seemed good, and looks like they have prior experience managing the building I’m buying (based off the leases that were submitted to me) but way to expensive to what I’m use to … $137 - $184 per door (over 10%) and then $750 per door for the maintenance reserve. 

I am somewhat new to Bigger Pockets, but not new to real estate investing. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

You have $200k in equity but you’ll have a taxable LOSS after selling for $1M or even $1.05M. 

But if costs are high or demand is uncertain, holding onto the land while monitoring the market might be the better play.

There's anywhere from $1.5 to $2,000,000 in equity, but the issue is it's owned by her 85 year old grandmother and they have no idea what to do with the property.

We use Hiscox for our insurance with our business, not sure if it works for property but its worth a try. 

But the 50% op ex ratio will be close enough for first pass. 

Quote from @William Weston: That would be an option but I have not seen multiple family homes that are big enough for a family of 5.

@Tyler GarzaYour "buy a new house, rent the old one, and trade up" strategy is a solid way to build wealth, but there are a few key factors to consider.