I’m a fourth year mechanical engineering student at UC co-oping at Mubea in Florence, KY.

Think large expenses like appliances and mechanical equipment.I hope you don’t mind, but I took the liberty to regenerate the calculator so you can see the true figures on this deal.

Guillermo - I think the mechanics of this analysis look good.

If it is structurally sound and has good mechanicals/roof, you can take that property many ways!

A brand new build with Class B tenants in a Class A neighborhood is going to have very different repair and CapEx expenses than a Class B property built in 1940 with Class C tenants, but where you just installed a new roof, windows and mechanicals.

Not knowing what you don’t know can be very expensive.Understanding building systems, mechanicals, and how to analyze asset condition is as important as analyzing a pro forma from a financial standpoint.

Champ - Overall, the mechanics of the analysis look good. 

We're refreshing the interior with new floors, paint, window shades, etc. and updating mechanicals/fixtures for now.

I don't understand the mechanics behind that, but I'm interested to hear what other people think. 

If you are borrowing the money for the purposes of construction, the lender may require a certified general contractor to oversee or complete the project.Lastly, you might be able to add an extra income stream if you could locate a mechanic who could use the garage and live upstairs in the apartment.