@Jim Welch,I don't do flips, but I would suggest putting large ceiling fans in all the rooms... people LOVE ceiling fans!   

The unit appears to be legal - 8' ceilings, kitchen, bathroom, living room and 2 bedrooms.

There is a a leaky faucet in third floor bathroom which has created damage to second floor's bathroom ceiling in addition to some other possible pipe/water issue as it was mentioned that after taking a shower water was found directly outside of the bathroom on the floor of the third floor apartment .  

Commercial industrial spaces in my city go for about 600k (3000sqft bad/non-central neighborhood with lower ceilings) to 1.6million (5000sqft decent central location, high ceilings). 

In the book he mentions that when he takes over a property that he will put Section 8 tenants in, he immediately takes out the washer/dryer, Garbage Disposal, Ceiling Fans and Screen Doors.If it's not there when the Section 8 applicant or inspector comes through....then they have no reason to expect it.

Internal parts of the HVAC are in the ceiling. 

According to the building code a bedroom needs to have a minimum size, min. ceiling height, ,means of egress, a light, and minimum outlets.

Overall, assuming there is enough demand to meet these numbers and we can buy at these still very depressed prices, it seems like it would be a low floor and low maintenance investment, generate moderate returns for the next 5-10 years, and have very high potential ceiling in the event the area experiences a comeback which many special interests are already working towards.

I just finished a home inspection on a three-family I have under contract and there is a basement apartment that has recently been re-done (new walls, ceilings, kitchen, bathroom, flooring, plumbing, etc.)

In PRIME location.It’s listed for 195kIt needs• brand new kitchen • 1 master bath, 1 guest• new flooring (everything is carpet)• paint• maybe 4 new doors• maybe exterior paint and definitely landscaping 3 bed 2 bath- brick chimney to the ceiling 😍Comps on the street are up to 275k- 2 streets down comps are 350-1.5milThis would be our second flip- does it sound worth it and what’s the best backup offer since we don’t know what anyone else has offered