My goal is to learn how to FIND the best deals particularly distressed apartment buildings that need repairs. 

I had invested in out of state RE in the Midwest before. buy & holds in OH that we ran into several issues with, incompetent PMs and lot of repairs required leading to losses and instability.2.

With a full time job even 15 units gets tough between collecting rent keeping repairs up, preventative maintenance, looking for new deals, managing refinances, etc. 

Quote from @Michael Belz: Now, I have two options: I could fix and flip it with an estimated $200K rehab for an ARV (After Repair Value) of $825K, having purchased it for $465K. 

If the HVAC goes out the warranty will pick up the repair and/or replacement.

As for the extra dollars unaccounted for, it could be a number of things - repair persons fee, management fee, failed repair, etc.

Co-signers can also contact you about the property, repairs, lease, etc.

It states there are no unresolved issues between landlord and tenant regarding repairs, Fair Housing issues, or anything else. 

Repairs vs. capital expenditures.- Find out how long the provider has been doing cost segregation studies and how many they have performed- Consider the resources available to the provider.

The house needs a lot of work with repairs and upgrades.