I turned on utilities and kept them till the tenant took over on the one and still have the other. 

A and B neighborhoods typically don’t produce much cash flow and are more of an appreciation play—something the city has been seeing quite a bit of over the past decade.

Nonetheless, you can base the DSCR calculation on PadSplit rent (if there's a history of PadSplit income being produced) or short-mid-term market rent (an analysis done at the same time of appraisal).

Anything Lee touches turns to GOLD! 

Let us know how it turns out!

Consider having the land trust turn into an irrevocable trust upon death of the seller if the seller is on the older side.

What is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"?

Interested to know how it turned out.  

I’ve seen many buyers successfully execute this strategy over the years, turning such properties into valuable investments.

I suspect the person who originally turned it into a fiveplex only applied for permits to make a fourplex and then did the 5th unit fly by night (perhaps at a later date) in order so the property would still be considered residential and allow for better financing possibilities.