It could be a good deal if you expect that kind of equity or future appreciation and it is a good and improving neighborhood.

I hope to purchase a multifamily in Reading or Easton PA outright, improve it, and use the income to pay off my student loans more quickly.  

The Commission spearhead a joint effort with the North American Securities Administrators Association and the Financial Industry Regulatory Authority to ensure coordinated State regulation and adoption of measured regulation that is transparent, responsive to the needs of small businesses for capital, proportional to the risks to which investors in such offerings are exposed, and capable of early implementation and ongoing enforcement. 4.

It’s available for college tuition, for home improvement, for paying down a mortgage…Investors gain access to solid, appreciating homes –without tenants or management costs.

Never stop improving!

Don't leave income on the table just because you will be taxed on it.3) Most real estate expenses are deductible in the year you pay them, especially if the benefit is immediate (like a utility payment or property tax).4) Some expenses are prorated through the life of the improvement, such as depreciable buildings and roof repairs.

Closing costs and holding costs will devour the rehabber's gross profit.And a rehabber is going to demand title insurance before sinking $50k in improvements into this thing.I recommend you move on to the next one!

In low/no appreciation markets, you want higher cash on cash returns that will offset the lack of appreciation and so you can at least exit the market in 7-10 years if you need to without losing money or you will have been able to save some of the cash flow to make capital improvements and continue to hold the property.Also, you want to buy at a discount so that much of the equity margin you need to avoid selling costs eating up all your aggregate cash flows is captured at purchase (and perhaps some significant gain above that).

@Timothy HoodIf you will be forming a partnership, or even if you choose not to form an entity and simply joint venture into transactions, you would really want to have an attorney help you out.  

Adding another bathroom will improve the property value.