I owe roughly $75K.I found an off-market, 6 unit deal that is owned by a customer of mine i'm interested in purchasing.

Aging reports would be another avenue to explore, but again, may not even have these.Lastly, while maybe this property is in a desirable area of town with strong demand from highly qualified tenants, but I get the impression this is a rough part of town, with very limited demand from tenants.

I will be investing roughly 10k into equipment for this new gig. 

Figure out the state and federal capital gains tax and depreciation recapture after selling costs.

It has sat empty for the last 20 years but the current owners have completely gutted it, have bids from contractors they're willing to share, cost estimates etc. and have had lots of inspections done and so much pre-work with the city and county to figure out what they can and can't do, so a solid plan is already in place.

We keep 8 figure working we are small time but if you check my website you can see what we do in a short over view..

My thoughts are to do an addendum (but not sure how to word it since she will have pre-paid her part until may) and let them figure out the security deposit between themselves at the end of the lease.

Based on location and some rough math, he's definitely looking for market value (stabilized asset) vs the current condition.

We are buying 7 figures a month and seeing 7-8 figures in opportunity - so no lack of opportunity in our space. 

Reason for question: If i were to purchase a SFH  for $75k and spend roughly $175k renovating the 3 bedroom home and converting a massive garage into two 1 bedroom apartments, I believe the property would be still appraise for about $220k.