I've searched a bit and have not come across a post that quite fits an investment opportunity I have been looking into.At the bottom I put a cliffs notes version of the building/surrounding area (probably could have shortened it up, and maybe I'm looking at too many external factors - however let me know)My thoughts - building would be good structurally/mechanically - located in the downtown core - building is already built out into 4 offices and reception area main floor with a kitchenette/half bath2nd floor has 7 offices, 2 baths, 2 storage rooms2 entrances into the building, street parking on 2 sides, building is located across from the local courthouse(Could potentially turn the upper floor into a couple of apartments or one large apartment - rent for 800-1k a mo for one large apt, however rehab $$ would climb - city would be more than willing to change zoning for this and encourages this type of arrangement in the historic buildings - ie office bottom floor, apt top floor)$60k Purchase Price$20k Rehab budgetPotential gross income $2800 per mo (7 offices $400 ea)Guesstimated Pro Forma--  $33600        Gross Income - 7 offices $400 ea       (5040)        15% Vacancy       (2400)        Property Tax       (2500)        Insurance       (6000)        Utilities - figured $500 per mo/gas/elec/water- think this is high though       (1680)        Cap Ex       (4980)        P&I Pmts $60k loan 5.5% interest - 20 year amortization       (4800)        Janitorial - $400/mo - this would probably be lower----------------------------------------------------------------------------------$      6200        Cash FlowI think I could improve on the above cash flow, not sure the Insurance is 100% accurate, could possibly increase gross income if I have more than 7 offices etc.  

The property is on a huge city lot (small acreage) and was a "hoarder" house, and according to the agent, the bid for the external cleanup was substantial, but was "completed".  

I am told the current management / lack of management does not really pay attention.While I don't think you can force people to pick up after themselves (in the apartment) I do understand with the state program, the landlord does have the opportunity to enforce the lease rules (community upkeep, noise, external trash, etc) or the tenant could lose the sweetheart deal they have for housing.  

. - No major floorplan changes (ie legal external doors exist for both units) other than converting 1-3 doors or archways into walls between the new units. - No work done to the Water/Sewer for separate metering.

I think it also makes me a bit harsher on price and terms, which in most times is a good thing.

But it wasn’t the external activity that surprised me, it was the internal charge I feel.

The majority of your cost to fix this issue will be external and maintenance related (gutters for the home next door, better drainage to push water away from the homes quickly, etc.).  

Bottom line will be number of piers required, how many external piers (accessed by digging from outside house along the foundation perimeter), internal piers (accessed by cutting into the slab from inside the house..don't be scared lol), the cost, and the warranty.

It is easy for me to just look at numbers and once that makes sense, then I move on the external factors: value add options, local market, rental capacity for the community, growth and development, and local availability/stability.

The goal is to buy an apartment (preferably in a poor (cosmetic) condition) , refurbish it during my stay in there, get some external help if needed (I don't mind spending time in a messy environment) and sell it for profit.