Because my buddy rented space and did a build out on an existing facility, he was well south of that 3M number.But as Ron correctly points out, you are buying a job, not a passive investment. 

We have also looked into hiring property management, but we live in a rural area and although these companies exist near us we have found that their average occupancy rate is in the 70-80% range, where last year my occupancy was 95%. 

Hi,On a 8-plex we are offering on, the seller utilized a 5% cap rate with existing NOI(30k) to arrive at 600k purchase price.

New construction properties sold under $300K were 24% of all new home sales whereas existing properties sold under $300K were 62% of all existing home sales.

I like your idea of leveraging your existing POH tenants by offering them the units that you wouldn't want to hassle with, maybe work an offer to give them the units contingent on a certain amount of extended lease time and at the same time bump the space rent up.

Other investors prefer 50%+ POH units and have an array of strategies that justify a high POH/TOH ratio, commonly leasing them on contract to purchase to existing tenants. 

cashother assetsservicesAre any existing contracts of either to be taken over by the joint ventureWho actually does / will do whatWill any external funding be needed?

The most important question you can ask a HML is as follows: "What are the names and phone numbers of three existing clients of yours that have done a deal with you in the last 90 days?"

Does this list still exist?

The biggest issue I see is the existing dry rot and the 60k lien from KYHCA.