The owner is selling it for a reason...what can you do with it that he/she did not.And, I think you're smart for looking beyond the first year cash flow; the most successful investors I know are interested in performance improvement year-over-year and are confident in their skills to "create" a winner.Hope this helps...what little you shared didn't scare me in the least.

Please be sure to select a Solo 401k plan provider which allows you to take a loan and will prepare the required 401k loan documents.The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence).There are no prepayment penalties and no restrictions on what you can do with the proceeds of the 401k loan.Please note that you are obligated to pay back their 401k (regardless of the performance of your real estate investment).As an alternative to taking the loan, you could even purchase the investment property directly using funds in your Solo 401k (assuming you select a Solo 401k plan provider which allows you to invest in real estate).

We’ll see how they perform.

I'd say it depends on the work to be performed.

It is now THEIR job to make your property perform.

I have had many offers and tenants were great, but I am separated and want control of my own money.They are suing for specific performance, despite that performance being to close on Aug 18.

I am hoping for feedback on how to best represent a major capital expense for a small apartment unit in terms of it's performance.

That's one of the reasons that you can't wisely go buy any home on the market and expect it to perform. 

Maybe there were, it's not really my area.I remember one court case where symphony musicians were not allowed to deduct the cost of their performance tuxedos, under the theory that those clothes were suitable for non-business wear.

He was cross collateralizing all of his performing rentals so he could do land development.