You will most probably need to have a Phase I Environmental Assessment performed {unless the owner has one that is recent, s/he is willing to share} both as a lender requirement and for your own peace of mind.

Your Effective Gross Revenue is your scheduled rent and, if you wish, ancillary income streams, minus your economic vacancy.Once you have NOI, your debt service is deducted from this amount as are any other reserves (capital reserve for future CAPEx; environmental reserve for reclamation on an industrial property, etc).  

In this book, the main theme that is driven into the reader’s consciousness is the necessity of Living Beyond one’s means.

It should be, at most, a starting point for your own research.1.A current rent roll dated no later than 30 days prior to the date of Seller's execution of this Letter of Intent, which rent roll lists at a minimum: the unit number, unit type, tenant name, date of lease, amount of monthly rent, amounts of any delinquencies, lease expiration date, and all security and other deposits.2.Detailed operating statements for the last two (2) calendar years, year-to-date detailed operating statements, and the Property's approved 2013 budget.3.Real estate tax bill for the last two (2) years on the Property (2011, 2012).4.Copies of any building plans and specifications and construction drawings in Seller's possession.5.Copy of Phase I, or all environmental assessments, reports, studies and tests of the Property.6.Copies of all contracts for services covering or affecting the Property.7.Copy of all engineering and related construction reports covering the Property, together with all warranties and guarantees for work performed at the Property.8.Copy of existing title policies and title commitments, including the Property's legal description and legible copies of all documents listed as exceptions and encumbrances to the title of the Property.9.Seller to provide current certificate of insurance.10.Summary of all capital improvements completed during the previous two (2) years for property.11.Copy of any government inspection reports (description and status of any violations)12.Copies of all tenant leases.13.Copies of the utility bills (electricity, water, sewer, gas, telephone and trash) of the Property for the prior 12-month period.14.Details and a list of all insurance claims (past or present) for the Property.15.Copy of the most recent appraisal.16.Copies of properties’ tax returns for 2010 and 2011.17.Copies of monthly sales tax returns for 2011, 2012 and YTD 2013.18.Copies of any capital project warranties if any.

Pay, except as provided elsewhere in this Agreement, all expenses incurred by the Agent, including, but not limited to, reasonable attorney’s fees and Agent’s costs and time in connection with any claim, proceeding, or suit involving an alleged violation by the Agent or Owner, or both, of any law pertaining to fair employment, fair credit reporting, environmental protection, rent control, taxes, or fair housing, including, but not limited to, any law prohibiting, or making illegal, discrimination on the basis of race, sex, creed, color, religion, national origin, age, marital status, or mental or physical handicap, provided, however, that the Owner shall not be responsible to the Agent for any expenses in the event that Agent is finally adjudicated to have personally, and not in a representative capacity, violated any such law, unless such acts and or omissions are outside the course and scope of Agent’s duties hereunder.

But consciously saying I am going to take a low rate of return believing that the property I am buying or the city I am buying will go up in value is not a smart investment strategy.I have not seen that per se in this forum, but the conversation has tilted as it usually does on this site to strategies that are more prevalent like SFH investing.No matter what the strategy is, it is always smart for investors with this kind of money to exercise patience, educate themselves on opportunities and invest in the way that they are most comfortable - IMO.

Be conscious of geo-targeting (https://support.google.com/adwords/answer/1722043?

I'm really just stream-of-consciousing right now, I'm in agreement that there isn't much on the market that is a worthwhile investment in the Seattle/Bellevue.Looking forward to the meet up tomorrow!

This includes inspections, environmental Phase 1 (possibly Phase 2), attorney fees, bank fees, etc.

Three words: Environmentally Critical Area.