While I have extreme fears about providing income, her fears are on the risks of having additional liabilities.

Sounds like you're going to be a great addition to the forums from Day 1 with your experience!

We have 40 long term tenant doors between 4 entities and just about to dip our toes in short term Airbnb with an additional 5 doors which are being renovated right now.

These are professionals with additional training and a stricter code of ethics.

These are professionals with additional training and a stricter code of ethics.

They will need to look at the entire value of the buildings and infrastructure, attribute part of the value to the existing septic system and deduct that portion as an expense, minus what might have already been depreciated.   

Additionally, what if you wanted to do a 1031 exchange down the road? 

@jeff khel thanks for your input, I ended up retracting the contract as the homeowner had all these additional stipulations indicating she wasnt as motivated as she claimed she was.

The stats are: -5 stories totaling 20,000 square feet above ground, plus a full basement which is partial commercial space and partial tenant storage/utilities-First floor commercial space is around 2300 square feet with an additional 1500 in the basement, 12' ceilings in the first floor-14 residential units above, most have private balconies or decks, elevator, bike storage, mail room.

Will make sure to add it!