My first reaction was..."

In this situation, my reaction would be to use one of my contingency clauses to get out of the contract.

Hi -  We are under contract on our first buy and hold that we have been able to find that has decent numbers...Would appreciate any reaction or input anyone has to this deal...good/bad/bad assumptions etc.Location - 63rd and Halsted (very close to the new whole foods developmentProperty - Grey stone with 2 units (3 bed/1 bath) unfinished basement with laundy and 2 car garage.  

It really depends on the risk vs. reward for you and how much time/money you have on hand.My gut reaction: lawyer up and prepare to sue both the city and land owner for creating hazardous living conditions.

They all have simple answers and negative reactions to pro active landlords when they them selves have next to no experience.

^^This was my initial reaction.  

I am not sure about your area but around me it is not a common expense that a tenant would pay, so would love to know the reactions the tenants have and if you experience higher vacancies. thanks 

I agree with @Amy Kendall do whatever you can to get the other unit rented and do it personally so you can gauge peoples reactions.

Unfortunately, the brass Kitec fittings allowed a chemical reaction to take place which eventually weakened the fittings causing them to fail.

Again you and your broker will know Ohio better than me but from a macro perspective my knee jerk reaction is you should push for 9-10%.Lastly you said the building has sat for a year, major red flag in such a hot market.