My guess is at current interest rates and building costs, the numbers won't make sense.Are you in the STR zone I guess? 

The seller would have to carry a very large second mortgage and this point will stop many deals in its tracks... but it's not impossible and it would definitely work if you can get the seller to agree to carry a large second.The other high LTV scenario would also involve a hard money lender and instead of cash we can cross collateralize with other real estate you own assuming there is sufficient equity in said holdings.The challenge in this scenario would be the cost of the hard money... it may be workable on the 140 units, assuming you are getting a good enough deal on place.

Cost on your sewer and water hookup.Scope the sewer see if it needs replaced.

I would use a company versed in this process to manage the operations of the LLC and collect the rents/operating costs for the owners. 

So she failed, has no documentation and may as well be making numbers up. thankfully its only a couple grand not the end of the world just move on and dont get so wrapped up in it... we all have bummer situations that cost us money it happens in RE ..

If renting RENTERS insurance for the amount you invested NOT replacement costs, it will be about 1k-1300 a year. 

Rehab cost? 

In addition, targeted searches for "apartments 77008" and "greater heights apartments" have lower competition which provides a great opportunity for organic and lower cost of acquisition.

I mentioned before that these things cost money to coordinate and advertise.

And doing whatever you can to cover costs make a few bucks while you hold it is just icing.