At the very least, you’ll need to know the going cap rate for your area and the property’s net operating income.

As far as I know, it's still illegal under federal law to house a growing operation without proper licensing and the funding of one.

if the operator fails  they can foreclose and unless you paid them off you get wiped out.. what happens is some senior lenders will not cooperate .. need to get that hammered out on the front end

My partner is based in Central Jersey and we are looking for a property manager to help manage day-to-day operations as we aren’t super close to the building.

I am told the current owner operated on handshake agreements. 

Currently tenants go off site to do their laundry, I plan on cleaning out the basement and adding coin operated laundry and installing storage cages for the tenants to rent if needed.  

@Kristin Shopp I have partners who operate in Dallas and San Antonio as well as Austin.

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

With a projected 5% vacancy rate, and 10% factored in for annual operating expenses, and a conservative $800 per month rent, I'm still calculating a Cash on Cash ROI of 19%.If possible could you provide slightly less subjective feedback, and share with me what you think an acceptable cashflow should be. 

More to the point on this though, was that his dad made some very shrewd investments including buying the building he operated his practice in.