Here are the simple steps to uncover the reality about demand:Start with the apartments in the area.

Upon home inspection, it was uncovered that there was knob and tube electrical in the house, there was asbestos pipe coverings, as well as unknown pipe fill and vent pipes (sign of an oil tank).

I'm still saying probably because there could be other complications we have not uncovered. 

Since this one that you are referring to has been on the market for so long, I would suspect they are way over priced, or the property has some sort of fatal flaw.

. - flashing installed incorrectly around chimney resulting in water damage to roof- outlet burned out due to fire damage- dishwasher circuit wired to other outlets and light fixtures- rocks out in door jamb instead of insulation- carpets buried in backyard only uncovered when installing a shed- boiler worked once (ironically for home inspection) and had to replace hot water heaterThe list goes on.

The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

Your system is flawed, DMM IS inherently flawed and that is why you think the way you think.

Believing we're saints and our partners are deeply flawed.

It worked out well, and we had a good relationship.If you were to move forward on a property like this, during the general inspection, you'd have your inspector check all of the major systems (plumbing, electrical, foundation, roof) for any flaws or obsolescence.

What we have is incredibly flawed, but it's a step towards some sort of transit system so we will take it.