with minimum --or no rehab --you are looking at fairly new --less than 10 years old -- and may brick --low maintenance --so you compare --replacement costs, cost per unit, cost per foot for whats for sale --and narrow down to number of units --say 15 to 25 as first target and not 15 to 50 -- Figure out how much NOI you need to survive -- and what type investment do you need -- will he cosign with you on a loan --how much down payment will you borrow from him --when do you what to pay back --or offer him equity sharing etc -- Business Plan is your own objectives and Loan Package is different from a Business Plan --

I just need to get my foot in the door!

As to the units, ask a general contractor there or other owners what the costs are per foot.

Bedroom in a rehab had paneling that went up 8 feet, in a room with a 10 foot ceiling.

The financing on them was the same (buyers with 3% down and max loan amounts).Now there are a few rehabs of the same house listed at $320K, without any of the same finishes as the tricked-out house.How did the appraiser on the tricked-out house get a $75/square foot increase?

@Jay HinrichsThanks Jay.Most investors buying these properties from our of state or nation do not know the expert tips from people that have had a foot on the ground for many years.I am fortunate to have learnt from some area experts here on the ground that still look after these things for us and make the numbers work.I sure have seen the oven method many times.I have also been collecting rents from great people/tenants that sometimes have to be short $50 for that month due to buying food or other bills.The rents must be kept affordable otherwise the tenants will not stay long.Thanks.

Well, to answer both of your questions.Although this is my first commercial property, I have purchased 2 other rental residential properties in the past not to mention 5 homes I have lived in over the years.While I'm not new to the residential process, I must admit I cannot answer your question on whether I should seek representation or not because I don't know what I don't know.I do know that the price per square foot is in line with the other office condos for sale in the area.

I think the Tennessee Landlord Tenant Act, which applies in Shelby County, would beg to differ.Plus, going into a rental agreement knowing that the security deposit is going to be kept regardless of the move out condition is really starting off on the wrong foot.

I seen yards 4 foot deep.

So if you want a 500 square foot office, you have to be at least $10K in the green per year just to break even if you rent an office vs. working out of your home.You've definitely come to the right place for learning and should be able to soak up a LOT of knowledge just through this site over the next 3 years.