Portfolio today market price:  $7,320,000Yearly Gross rent:  $495,500Yearly Operating expenses:  $105,000Yearly Average repairs/maintenance etc:  $45,000Yearly Debt Service:  $228,000Yearly net cash flow:  $117,500If I rasie a minor rent of $25/month each unit per year, $25 x 50 units x 12 months = $15,000 extra rental income per year. 

Hi Fiona Humphrey I operate in St Louis and am very familiar with the headaches a 10k property can bring.

@Karen Chenaille that is a good and loaded question on which you might receive many contradicting replies. 

However, when you add PM and CapEx savings to the Operating expenses it drops your NOI tremendously and then when you multiply it by the Cap Rate you get a much lower valuation of the property than the listing price. 

Or are there other ways I can do my own due diligence on seeing how this property can potentially operate?

They are living in a market they are priced out of and look to Midwestern cities for lower entry prices.They do not have the time, ability &/or desire to be an active operator in the business of rental real estate.

Congrats on getting this deal Harsh.First things first, you should be talking to your attorney and your CPA for legal and tax advise on how to best structure your deal according to what you agree with your partners.That being said, the structure of a deal can take many different shapes and forms and it will vary according to the type of involvement the partners will have in the deal.Are you in charge of putting together the deal, securing debt, managing the operations?

No K1s are involved unless you operated it inside an S-corp. 

Under market rent is normally charged by hobby landlord investors or lazy investors that do not wish to be engaged in operating a business.

"Frank" has a lot of properties that he would like to somehow lessen the work load on :-)Thanks, Dan Dietz