My background is in performing environmental due diligence for Private Equity real estate transactions, REITs and other transactions.

Lots of discounts available for upgrading old properties environmentally too.

The county Environmental Dept can help figure out what you are working with there, and what challenges might present themselves , but wells and septic systems are expensive to dig/drill/install/replace, so know what you are getting into there. 3) People often think that because their property is in the south valley or outside of ABQ, or on acreage, that they can do whatever they want with it, but there are usually still CC&Rs that will dictate the type of property, size it needs to be, whether or not a guest house or 2nd dwelling can be added, height restrictions, and so on.

You also want to check the state's database to make sure they don't have the site on their radar for past environmental issues that have not been resolved.

No environmentally conscious person will get behind this as a great new way forward.

Without a outdoor air exchanger you may have environmental issues/air quality.

How about the $10k appraisal fee/environmental report?

Or any other environmental requirements?

Age of systems and major components, upcoming repairs, any zoning/legal/environmental issues, years left on the leases, reason for selling, surrounding area and potential to find new tenants at same/better rents, lease terms (who pays for repairs, taxes, etc.) etc.

Clearly, a property with poor visibility filled with a lot of mom and pop, non-credit tenants will trade at a higher cap rate than the primary retail corner with all national credit tenants.Your phase 1 is important, and may require a phase 2, if there is any indication of environmental issues.