However, if I could spend $300k or less for a new roof over the second floor and repair lower units(flooring, painting, and potentially some drywall) then this project becomes a lot lest risky and still shows a similar financial upside.The plan is that to buy the property with a valuation for 23 units that are functional and renting.

Find a planner that has worked in that city before or in Pasadena or Monterrey Park as they all function the same way...eg landscape sprinklers required but in LA are not.

Preferred equity can function a lot like debt if it is structured properly.  

Since the A/C system can likely not function without the compressor in operating condition, replacing the compressor is considered a "restoration" of the A/C unit and material to the A/C system.

I don't plan to put in new tenants yet. currently functioning with 3 tenantPURCHASED: $1.055MTERM: 50% financing, 1031 exchange with 550K financing, RENOV: needs 100K in Cap-X renov.MORTAGE: $4,500/moCurrent rent: 5000+1000+2200= 8,200/mo GOI 98,200/yrTriple net tenant will pay for CAM and TAXLost rent: 1500+1000+2000 = 4,500/mo or 54,000/yr------Current GOI: 8,200/mo or 98,200/yr Tenant pay their CAM and TAXVacant CAM+ TAX: 1,800/mo or 21,900/yrMortgage: 4,500/mo or 54,000/yrInsurance: 4,000Current NOI: 28,300 or ROI 3% (22,300/630K invested)Potential GOI: 152,200/yrCAM + TAX: Triple net by tenantMortage: 54,000/yrInsurance: 4,000Potential NOI: 94,200 or ROI 15% (94,200/630K)Market Value: $1,055,000So I look for VALUE ADD stuff-----------THANK YOU FOR YOUR TIME

That won't change the tax rate, but taxes are obviously a function of both the rate and the tax value--so just a friendly heads up.

It's not that we are not interested in them, it sometime is a function of money, or, time, since we have a few deals going on at the same time.

(Yes, they're all technically different, but they function the same as far as a buyer's ability close quickly and relatively hassle-free.

As far as payback goes, that really is a function of the utility rates and how often the tenants are using (abusing) the hvac. 

However, functionally those high taxes are passed on to renters -- rent as a % of property value is relatively high, even though absolute rents are not expensive.All property taxes in our area include 4 categories: county/town, city/village (only if property is in an incorporated area), school, and sewer.