It should be in your lease that they have to pay for any short term unexpected issues.  

I've purchased a house that had 'everything replaced' but I've been hit with big bills unexpectedly...so if you feel the urge still without cash reserves (or the ability to build one) I hope you have some credit you can tap into (which it doesn't sound like do).  

The vacant side that I would be moving into was recently updated and has many new components.  

Conversely a business could do 500,000 in sales and have a net profit of 220,000 before taxes each year.The biggest component when I look at buying a business is that if it's a job or an investment??

Did you do one and still got bit by an unexpected sewer bill?

Good suggestionOn one of my first rehabs I had an issue relating to major unexpected deficiencies in electric and plumbing systems that were exposed in demo and not in the budget. 

Somewhere on the forums someone suggested looking at the major components of a property such as roof, appliances etc.  

Quite frankly, unless your friend ENJOYS sleepless nights, constant stress and worry, unexpected and excessive expenses I would stay CLEAR of real property.

No bidding wars, no GC headaches, turnkey home for meNo unexpected carry costs, marketing, a single agent only fees for friend I did read that friend can't sell it to me for less than 25% market value which leaves me a potential immediate equity but could be discouraging for him since he could potentially make more from this project.

If you want to get into the nitty gritty of depreciation that improvement value is actually made up of building components, land improvements and tangible personal property.