Investors who are able to consistently attract money will be able to handpick opportunities.

. - 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.

If it is not common, that effects marketability, there would be external obsolescence that will reduce value, who wants to live near a stinky factory, or where a factory could be built?

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.  

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".  

The condos I've looked at or bought have all had the external insurance bundled and paid through the HOA.

Of course, this is assuming I purchase at list price, but the home has been on the market for almost 2 1/2 months so I may be able to come in at 125-130k and negotiate from there.However, the main home also has a large unfinished basement with an external entry.

I would highly recommend him to others thinking of setting one up.Before I knew of him and  SOLO401Ks I set up a SDIRA with another company where there IS an 'external custodian', meaning someone other than me. 

The line on the appraisal that will trip you up is "Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)?"