The building itself contains a bathroom with fully functioning plumbing, electrical, and an HVAC system in place already. 

And if your electric contractor is one man, he likely can't put the 40 foot service line back on the building.If the tenants are on a downward spiral they won't get out of it even if they rationally can. 

Instead I have decided to add some extra electrical outlets and put in lights and rent it as a workshop.

I haven't seen anything under 200-250k all in cost  Part of it is detached garage and using existing structure + existing electrical.

It will be dependent on how much cutting they have to do and coordination with other MEP systems such as electrical and HVAC.

They said the building would need to be updated for plumbing and electrical as it was 65 years old. 

It becomes like breathing air you just know how to do it optimally without thinking about it.I have seen syndicators take on loan assumptions with marginal terms and high fees or they used floating debt just to massage the numbers so they could hit a certain projected pref (hopefully) to the investors to entice investment of capital.

When it comes to anything major like electrical, plumbing, or structural...I think you need a permit.

Electric baseboard heat is a cheap way to replace an old furnace that feeds several units which you pay for.8.

If any of the "Big Five" systems (HVAC, plumbing, roof, electrical, water heater) haven't been updated recently, they still should be budgeted, even if you expense them later.Also, if you're primarily buying for cash flow, then this seems like a whole lot of work for just 7.75% CoCR!