If the Owner hasnt increased rents in 10 years to keep 100% occupancy, most likely the leases either renew month to month or they sign new 12 mo leases and the terms probably arent all that complicatied so increasing income value may not be that difficult.Sounds like the deal may have some merit and I'm sure you know the details of which comments have been made so proceed cautiously and keep us posted on the progress

That does not mean out of state investing is the answer it just means that it has merits to consider and not just because you can get in at a lower price point if you have less money saved up. . 

@Felix GoldsteinWell, since nobody else has responded to this nonsense, I suppose I will reiterate my previous points, for I fear that newer members to the website might read your dribble and think it has some merit. 1) You do not own a property by putting it under contract.

I'll no doubt need to partner with an experienced developer to give the deal more merit, but aside from that - I'll be packaging the whole thing.I'm just wondering what pointers or tricks-of-the-trade you have for a small-time guy such as myself that is looking to package my first solid deal?

@Jonathan TwomblyThanks for getting the ball rolling with some detailed discussion on the merits of an LLC for real estate investors.

While Zillow can be almost humorous on individual properties, I think their is some merit in their numbers overall. 

hi jonathan. these two ideas are good on the merits, but your situation goes a little deeper than what they are recommending. sure, banks will not give you a loan without credit and a job, thats simple enough. you can just get a job, but you cannot just get good credit. i would recommend moving to another area. $40k will not get you very far in las vegas or any place west. here in buffalo, we have a good market. the prices stay pretty level for the most part. the killer is the taxes. then again, we have the winter issues too. not only does it get very cold which makes it hard to work on a place, but we have winter about 6 months out of the year.....lol. as far as your credit, pick up a part time job in a field that you have been in before. then, the job is a lateral move, not starting a new job in which you would have to wait 2 years before you could get a loan. second, take $1000 of that $40k and put it into a bank. after a month, go get a $1000 signature loan from that same bank, using the $1000 you have in the bank as collateral. state that it is a short term loan that you intend on paying back in 6 months. then, take that borrowed $1000 and go to another bank and deposit it. after a month, borrow another $1000 from the second bank, again using the deposited $1000 as collateral. continue this with as many banks as you can. when the first note comes due, use borrowed money to pay it off and continue as such with each bank. what you are doing is establishing credit with these banks and soon you will be able to go into any one of those banks and borrow money because you have good credit with them. 

I don't anyone who would be willing to partner with someone who's more focused on getting out of a deal than in capitalizing on the merits of the deal.

Très bien mérité! 

But terms can "cloud " your judgement and value the deal on its own merit.