And exactly my point they are economically obsolete you would spend 5 to 7 times as much rebuilding them from ground up as you can buy them for standing there. 

It will be necessary to identify them properly as well so that they can be properly disposed of in your books if they are ever replaced, traded,sold or become obsolete.

If changes in life, the world, technology or economy have made your business model obsolete, change your business model or close the doors.

There is also a functionally obsolete bathroom in the attic.

Budget for AC replacement you need one, he mention near or at end of life, R22 is obsolete and super expensive now days.

I get it that the apartment is somewhat functionally obsolete.

@Fas McO'nen  nice post.you will though continue to get yellow letters as this is the major playground for wholesalers in almost all rental areas.Burnt out landlord is their favorite target.. unfortunately Morris's representation of the neighborhoods and asset class in my mind is pure fantasy.. some of these will work of course.. but 50% of them over the next 3 to 5 years will become wholesaler bait yet again.there is a term or two terms in real estate one is  functionally obsolete and the other is economically  obsolete..these areas Morris targets are both.. but from Morris side of the table there is never ending inventory ( landlord burn out Wholesaler feeding them) big margins 15 to 30k.. on small dollar value properties that people pay cash for. 

Much like planswift (and any advanced program), there is a learning curve and you must be fastidious in the way you set things up.One of the biggest issues I had with Planswift was that it was simply structurally obsolete.

Building and industrial suites were previously “black-listed” and deemed “too tired” and functionally obsolete by the brokerage and tenant community.Through thoughtful and strategic sourcing, we were able to complete high-style “creative” flex- office design for nearly ½ the cost of competitive landlords.

And make sure to account for the following in your operating expenses to get to the real cash flow:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance   a) Property Hazard Insurance   b) Flood Insurance   c) Earthquake Insurance   d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy)   a) Water § Sewer § Garbage   b) Electricity   c) Natural Gas   d) Propane9) General Maintenance (usually 5%)   a) Upkeep § Landscaping   b) Snow removal   c) Repairs   d) New Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...