Depending on the construction, you have to do major upgrades on electric, plan for plumbing for apartments which may not be permitted in the area for the sewer or septic.

You will likely have to lower the rent because you are taking space away from them AND making them share space. 

Cash from a self directed IRA How did you add value to the deal?

No one is going to allow that and construction-wise, it is usually not cost-feasible for the output rent on such a large property.

If you talk to appraisers, we have another 20-30% to go.

You forgot to put your location in your profile.

I would imagine it ended with him making no money as this sounds like the biggest steaming pile of poop I have ever heard of.

CashHow did you add value to the deal?

,Welcome to the BP forums!

What I do for my units with shared meters is I charge 50% flat to each tenant which prevents waste I get no issues with any waste due to this but the ones that share electric bills do get many complaints due to the size of the bill.