Grab two 12 packs of green glue and throw an extra layer of drywall up there to be safe - if you think sound is a concern, now is the time to address it.

Maybe I'm a little slow but there always seemed to be a vital step missing.

Its vital that you follow through with it and use it on all future deals.

I have learned a couple of things though from the time I have invested here.1) Building RE connections is vital to RE investing in general. 2) Good communication skills are important.

I could probably try going with one but through my discussions with all these banks, I think they have a set number of key metric items they use to determine their "layers of risk" with a buyer and having too many eggs in one basket with a borrower seems to be one.Plus, sometimes, local banks reach a limit on their ratio that they literally have to shut off the spigot to these types of loans.

For me it just adds an extra layer of protection.

Roofs need extra layering material (to protect from all the ice and snow), many plumbing systems use cast-iron drains (which are tougher to tie into than PVC), many houses actually have wells for water (ours used to, and now we have to abandon it properly), electrical codes are different (this should actually help us), etc.

If they are, or it can be achieved relatively cheaply (and there are already separate electrical entrances), look hard at replacing the boiler with three smaller units which will allow you to put the utilities into the hands of the tenants.3) Get the sewer main scoped to see if when you will need to replace the clay and cast iron (if it is still in descend shape, you might be able to sleeve it to extend the life).4) Window air in each unit, give the impression that the building envelope was never updated (ie. no insulation, just one or two layers of lath-n-plaster).   5) The building is also most probably balloon framed.  

If you decide to go Sec 8, you will want to maintain a good working relationship with the housing authority staff, so it is another layer in the LL/tenant relationship. 

This will light a fire under them to actually look for deals for you.OK so the top layer of the funnel is done.