I was under the assumption you would buy the land & building itself, keeping the pizzeria tenant in-place by renewing their lease at $5.5k/mo, and renovating the apartment to lease it out at the new mkt-rate of $3k/mo.

My basic assumption is move towards eviction and keep the security deposit.

I don't think you can go wrong if you have the liquidity and the market is strong. don't forget that hotels are built in the middle of nowhere brand new and do fine. if you want me to look more closely at it send me a DM, this is ours right here that we proposed so you can see the style but it's 81 residential units, 45000 sq ft, 6000 sq ft of retail, no parking. on your assumptions, your occupancy rate looks high. pull some hospitality reports in the market and see what it is. your exit cap looks about right for what I've seen in hospitality.

This is basically a possible framework for my semi retirement.  5 year plan Assumptions-My own company is building everything (except electric) and cost savings can be opportunistic on overstocks, returns etc, but my cost assumptions don’t include any savings here.

On the other hand, unless the seller is financing it, you are almost certainly not going to get 100% financing, so you'll need the down payment plus reserves for working capital and capex.I'd then look to find an experienced apartment owner, ideally one in your area, who can look over your proforma assumptions to make sure you haven't forgotten anything big. 

My assumption is that she'll say 30 days is not enough time to find a new place (if she can't promptly pay her under market rent, how will she come up with first and security deposit elsewhere), will not finish paying her May rent and won't pay June either so trying to see if it's best practice to have that eviction filing in process as an incentive for the tenant to move along quickly.As a note to others in a similar situation, what I've read here in the forums that I didn't adhere to was "stick to the lease" and if someone is a consistent problem, they're not going to turn on a dime and get better, you have to protect your investment and part ways when things aren't working.Any insight appreciated.

Interesting take here and your assumption may be correct.  

I think 50-150 units is no mans land and we stick to institutional level sized deals. his underwriting is too simple. the unit mixes are off we only build studios and 1 beds for fast absorption, the deal is also under parked without a parking study. anyone who uses "roughly" in their analysis isn't sophisticated enough. we underwrite rent growth, asset growth, and a million other assumptions this wouldn't pass any people I know who invest in deals. get with a More experienced operator and read more sophisticated underwriting. 400k per door new construction is crazy. how much is the land? 

Most "cash flow" properties are high risk investments that can be underwritten to show cash flow, but actually hold high levels of tenant risk, turn over risk, Capex risk, and only show more cash flow by underwriting with the same assumptions as a high end area.  

Your assumption of there being "strong evidence" of a meth lab isn't always true.