Clearly taking one of these types of deals down is not a simple undertaking and I can see how difficult it would be for a seller of a portfolio of SFRs to sell it kit and caboodle to another investor.

While you are all worried about the risks you are going to undertake, you worry yourself out of possible deals that could be sure-fire winners.

This is an undertaking.

You can't take your money with you, so live like a rock star, the last check you write should be to the undertaker, and it should bounce!

Keeping it fully occupied can be an undertaking because it is too small for a family and quite a distance from the university, however for a young single couple it worked out quite well.

Depending on when it was cut-up into three units, the separation may not meet current fire code - you will need to consider this when undertaking any significant renovation.

A licensed general contractor on the other hand, "who undertakes to superintend or manage, on his own behalf or for any person, firm, or corporation" (bold emphasis mine) can build his own.

Is this too much risk and too big of an undertaking for a new investor?

Your Realtor should be able to help with some of these questions.   40 units is no small undertaking!

It would be a pretty big under taking with them still occupying the unit due to their equipment.