Do good due diligence and then determine if it is a good deal.Most new commercial construction gets built to a gray or green shell (the metal studs and insulation exposed or a layer of drywall unfinished) so that the tenant can do the build out (finish it according to their needs).

A very well soundproofed apartment will have a two layers of drywall with insulation in between and acoustic pads wrapped around the electrical outlets and light switches.

Small multifamily seems to be the most workable buy and hold strategy here right now, but I am underwriting both rent and value declines in the short term on these deals (as well as expense increases) because even though we're very insulated from the rest of 'the market' it would not surprise me to see another countrywide decline, and I want to be prepared for it. 

Is block better for insulation purposes and insurance reasons?

The mtidry.com system allows you to put a vapor barrier back in between the studs and then use spray in foam insulation to prevent racking.

I showed them insulate cushion underneath.

Use solid core insulation board, about 2" thick on the walls. 

Depending on how old the structure is, the insulation value of that wall might exceed that of traditional stud framing, thus saving money on heating and cooling costs. 

Lender appraisal- $585KAll major systems will be replacedLower bathroom is a gut and expandNew roofReferb kitchen keep 60% of floorplan and cabinets PaintSump pump and drainsBlown in insulation in the attic Windows are maybeEgress window creates a 4th bedroom in basement3 months of carry expenses additionalAll improvements - $60K budget.

Bldg dept will want electrical upgraded - and maybe windows and insulation too.