So, I mention all of that, which is not uncommon knowledge, to point out that addressing the OP's question can be a bit more simplified.

On the one hand the 2nd floor room is just above the boiler room and just below the electrical room; simplifies any plumbing, electrical and gas work that needs to be done, as below electrical is the only real concern.

So, really, all in all, it's about simplifying our lives so we can eventually travel full time.

Pex really simplifies plumbing.The inside of some of the galvanized pipe I removed was completely disgusting.

I'm going to give you a highly simplified version:Buying the property:Credit - CashDebit - BuildingDebit - LandThe two debits are split based on the % ratio discussed earlier.

To simplify, my solution would have been to walk away, it isn't a deal and is a waste of time being so far from reality.

If the property was only in service for a portion of the tax year, you will annualize the NCF.In some cases, particularly if the property has been purchased recently and there is no tax return data yet available, banks may use a simplified formula of (Gross Rent * 75%) - PITI, where the 75% represents vacancies, maintenance, property management, and miscellaneous expenses.

Appraisers will use comps to value the property, so you need to thoroughly understand what similar buildings are selling for as well.This is all very simplified, and assumes a decent property in a decent area.

Back on topic, sorry, but this will simplify things...thanks!

For example, suppose you are considering two identical properties that rent for the same amount (yes, this is an over simplified and contrived example!).