Including a brand new $50,000 roof in 2017Current property taxes $4,377/yearOwner pays water & sewerAs this was a complete renovation there are no historical financials

I could tease this out more, but the main reasons are 1) a down economy, 2) an emerging economy, 3) AAA property locations, 4) lack of credit available, and 5) historical buildings (very sturdy construction, 3-4.5m ceilings, etc) that are very undervalued at the moment for mostly aesthetic reasons that can be fixed quite easily.

The listing says Pratt-Monroe, but it’s technically in Union Square historic district for chap purposes. 

We have an area in riverside that has historic homes that are worth a lot of rehabbed right and there are restrictions on how you rehab them as well since they are historic.

typically places with great historical appreciation have higher entry cost and lower cash flow.  

It may just take you some time to figure out what the right amount is, but if you just bought this property you probably already know the historical utility expenses.The downsides are obvious - if your water bill is higher than the rate you are charging, you as the owner are going to eat that charge.

Right now apartment cap rates are at basically historic lows, so although cap rates could be at a 8% in a market, it could be 10% in 5-years (or 5%...if I knew, I'd be a millionaire at 22).

The area is in the downtown of the town that I grew up in( so very familiar with the demographics and historical rents etc. ) and have noticed it trending up for the last decade or so due to nightlife, low crime and decent schools, major train station in town, and the coast line with beaches .The house  has two units which are currently yielding 1600 and 1500.

Rates today are historically low and I think I'd rather have a guaranteed rate than roll the dice in 15/20 years when we want to refinance and have no clue where rates will be.

Although our market is hot, vacancy rates are low (below 5%), interest rates on a presumed 30 year fixed mortgage are historically low (floating around 4.5%) and rents are increasing with the high priced housing market driven by a lack of inventory.Unfortunately, TierraSanta doesn't have a lot of MF's but the surrounding areas hold possibility if you're flexible on your target market.