I do have each person on the lease.The type of tenant base this is however is that say a mother,son and daughter live there.Her sister approaches the mother and says let us move in and we will pay 250 towards the rent as we can't afford a place of our own.Upon our bi-weekly inspections we find that the sister and her 2 kids are there.Now you have 6 using the water etc.The reality with apartment buildings of this age and tenant base is that families consolidate to save costs.They might be renting an apartment elsewhere for 600.Job hours are cut and they move in with sis and pay 250 and save 350 a month.The extra usage of water is what I am concerned about.I do not condone extra people there but want to control extra water usage.

(as long as this is on the up and up) As I see it, Seller and Buyer agents receive their funds from the seller.Rusty - I have approached REO listing agents in the past.

I would approach the deal with one additional assumption:The current tenant buyer will NOT be your end buyer.

I really enjoy this site.Steve, I like this approach.

Removing emotion from the equation will help you develop a more pragmatic approach.

I would be curious as to how others approach the issue. thanks in advance.

Biggest issue is that the things an office building is missing (kitchens/bathrooms) are the most expensive to add.Have you considered a more communal living type approach?

Maybe approach them and see if they are willing to carry the financing till the end of the rehab and till you hit a set occupancy number, then refi out and pay them off.

Just brought it up to where it is supposed to be.

All the cities I dealt with viewed a moved house as new construction, i.e. house had to be brought up to current codes including latest energy codes.