A storm door would serve a similar purpose.

I think it's still the case here in Charleston County that you can add an accessory dwelling of up to 800 sqft as long as your lot meets certain minimum lot size requirements.  

Sites like Zillow and RentOMeter say that my ask of $1400 for rent is near the top of the market for the area, but still reasonable for a unit of this size - and that is even without the basement.So does the basement effectively get thrown in for free?

The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

I went to college at UofO, if my memory serves me well, I want to avoid renting to collage students as much as possible :).

Define size of each market segment - Number of units sold, dollar values, absorption rate (avg. time it takes to sell)2.

I am looking to connect with more investors and to learn more about the industry to better serve my clients and maybe start a few investment projects of my own.

Granted, this 5 unit will be a much larger project, but the size & cost of the project is what's making my other partners a little apprehensive about this property. 

If they do something you think is wrong, accepting too low of a credit score, not serving a notice to vacate at the agreed upon time, accepting partial rent without consulting you, etc. etc. you have the opportunity to correct them. 

To further my goals, i've built a good sized fund and am currently pursuing my real estate license.