Total debts come to about $97k, the appraisal came in at $120k, but comparable sales in this area are $85k at best.

It is on a major road, and you cannot compare it to houses that sit within a normal neighborhood.

I would tell them you had made a mistake in thinking there was central air, maybe show them the comparable rents in the area, and ask if they want to be released from the lease.

I often ask if paying $100-125K+, for a turn-key unit, is a more financially effective play compared to buying a rehab/remodel project at discount.

If you think they're not aware of the comps (and why would they be since they probably haven't been looking with rent that low), you could provide them with some comps to show them what comparable properties are renting for and what a bargain they're still getting at $1950/mo. 

Easiest way I would look at Zillow and see what is comparable to your properties that has sold recently. 

found out what comparable rents are for like units in the area and price accordingly.

If this deal seems feasible, I will then follow up with other apartment complexes to compare and see why they are priced so high and what I can do to make the value better on the subject property.I do not have any experience in MF investing, I have bought individual condo units in different associations as rental properties, but that is the extent of my knowledge for Condominiums.

If this deal seems feasible, I will then follow up with other apartment complexes to compare and see why they are priced so high and what I can do to make the value better on the subject property.I do not have any experience in MF investing, I have bought individual condo units in different associations as rental properties, but that is the extent of my knowledge for Condominiums.

Do I wait to try to learn more aboIt multifamily deals and simply save for that, as it is less risky due to vacancy risk compared to SF?