Projected IRR at the 100% return would be around 15-16%.

It feels irrational.

Also, it seems the only ones for sale have high vacancy but are pricing as if fully occupied.As a residential real estate agent I often encounter irrational sellers (which is why I hate it and am going to start turning away clients), but didn't think I'd see it as much in commercial!

Juliette V. but those numbers he used are very irrational and not the kind of numbers that are part of a sound strategy to build wealth and cash flow for retirement like your original post mentioned. 

Apparently that makes you irrational.  ;-)Of course, some of us believe that being leveraged to the hilt is foolhardy . . .

Private lending isn't going to eliminate GSEs and irrational debt pricing for 30-year money that the government subsidizes.

However, you are talking about an irrational problem.

I am worried though that should the buyer eventually have an issue with it clogging again, whether it be a day after the close or a decade after, they may come at me to have it fixed.These buyers are on the border of being irrational with the requests they have made and it would'nt surprise me in the least if they'd try squeezing me again...not just for the drain but for any other issues.

The association was defunct and there was no way the association's documents would ever be updated to reflect this.ANOTHER thing to be aware of is this: There is case law from New Jersey (not controlling in your state, but can be used for persuasive purposes - so may actually be relevant) that basically says an HOA has limited resources, there might be times/occasions when the HOA doesn't have enough money to pay the bills, it's reasonable for the Board to make judgment calls on which bills get paid and which bills do not get paid, and the unit owners elect the Board to make these judgment calls so the unit owners only remedy (as long as the Board is not acting in a totally irrational and unacceptable manner - as far as the court is concerned) is to elect a new Board - unit owners can't sue Board over their decision on what bills to pay.THEREFORE, while the association documents may say what the Board is doing is not allowable - in practical terms, it very well may be allowable....

I was more referring to the irrational exuberance in the market right now - IPO's are catnip for RH's.