When "The Recession" lost his job about 2 years ago property prices have gone through the roof. 

I think capex will be easy to figure out once we tour the property and have the roof, driveway, and building inspected.

The other factor to consider is I would lose the HELOC on the house which I have used as my reserves should a large expense (like a roof or furnace) arise.If anyone has done something similar, share your story. 

Any improvements that impact all 4 units (IE a roof ) you would depreciate 75% of that over 27.5 years. 

I love midcentury homes, but we all know how energy inefficient they are with the floor to ceiling windows and flat roofs...

Property is in decent condition, roof, windows, look good.

You should also have wording about not being responsible for damage to the tenant's property from other issues such as a leaky roof.

Expenses:  Because of the age of these homes, they sometimes need roofs, kitchen remodels, etc.  

Hi Ryan,Here is how I calculate the reserves for these smaller multifamily deals (I own three 4plexes):Essentially, I determine the remaining life of the major items, like HVAC, water heaters, roofs, siding, etc.

The current owner is definitely losing money with new roof, siding, cabinets, refinished floors, paint, etc.