this is definitely something I will work on and improve for my next approach.

A family member has approached me to run the project for them selling a property with which they inherited. 

roof and ac are a must for sure, second question is since we are gonna live there that means one family will have to leave and we have to decide which side we want so how do we approach this in the most delicate manner?

In April, I was approached with a large package deal of 15 units.

In a training program I did I was taught to estimate costs at 50% of gross income when analyzing the financials, but after looking through dozens of marketing packages I have only found 3 where reported expenses even approach 40% and most are around 30% or closer to 20% of the operating income.

@Kiersten Vogt: Another approach is for her to tell you what she wants. 

@Alan Sweeten Gotta be real careful with that approach...really can depend on your intentions with the property. 

Are folks using this approach and waiting for a refinance to pay off the 2nd mortgage?

It's a conservative approach, but it would still work very well in the near term for the cash flow.

@Jon Frederickson you need to put together a solid plan of action in terms of how you are going to approach the business and get a deal done.