Hi BP Community,I’m looking into my first out-of-state multi-family partnership with someone that already has experience in the local market and connections to the operational teams required to make out of state investing successful.

Rents were well below market and substantial repairs were needed.

3) Exterior, interior and overhead at the end?

Anything less is recreational and they'll be learning on your dime and you won't even know it. 

Here is a scenario where it all works out nicely.- You close on December 10th- The property is in great shape and does not need any significant repairs- It only needs some paint touch-up and changing a couple of broken fixtures, which you do yourself- You spend the next week buying furniture, electronics and supplies and installing/arranging everything yourself- You also roll up your sleeves and scrub the toilets and sinks and appliances- You put it on AirBnB/VRBO and have your first guest renting it for the 3 days of Christmas- You second guest rents it for the following weekend and leaves before NYE- You personally clean and restock the place between these two guestsCongrats!

In fact as the fiduciary your responsibility is to grow the account as quickly and effectively as you can.  

Cost segregation can be utilized for many different scenarios such as new construction, properties already owned and newly purchased properties.

It will show the rent amounts, who pays utilities and expenses they know annually.

List of all items remodeled and how much they cost and the comps in the area (some appraisers come from out of the area and you know best what the comps are and numbers are).Other option: if the numbers turn to be tight and you cannot refi, I would think about selling it lower and taking less on the deal to get your hands washed from the project.

Good luck and keep us updated!