You have several heavy weights in this thread giving much better advice than I could probably ever hope to.However I have a very simplistic mindset and sometimes look at things different and maybe my thoughts will strike a chord.- Always plan for the S*** Hits the fan scenario- What happens if the owner dies?

If you were able to convert your traditional IRA to a ROTH IRA (or a portion of it annually) into a ROTH IRA, this would allow you to gradually take the tax burden over several years, rather than in just one.You would pay the tax on the conversions in the year converted, rather than when you distributed the property to yourself.Jim

On that note, you mentioned that the roof structure is showing signs of giving up... assuming that the tile roof is real clay, then the weight of that is a burden to the roof structure.  

I think you understand equity just fine, but maybe you're putting too much weight into it in terms of investments.

Your words carry great weight

Guess Mark is gaining weight in his paranoia. :) 

You can't have the cake and eat it too (sell potential at a high price but let the buyer create it).I also put ZERO weight on newly placed tenants.

We typically don't put a lot of weight in the pro forma material, seller/selling broker typically paint the best picture possible.

The plan is to gradually raise rent to market value, when the tenants move out I will renovate each unit one by one.Unit 1: Current $1,180 Will go to $1250 when I buy.- 4 year tenantUnit 2: Current $1,130 Will go to $1230 when I buy.- 15 year tenantUnit 3: Current $1,120 Will go to $1220 when I buy.- 6 year tenantUnit 4: Current $1,130 Will go to $1230 when I buy.- 5 year tenant-Utilities: All tenants pay their own utilities (Gas, oil, heat...not water)-Water Bill: $650/Quarterly- Paid by owner (me)- $2600/yr-Taxes: $1700/Quarterly- $6800/yr-Home Insurance: $2150/year-Flood insurance (needed): $2001/year-New roof 2013-New hot water heaters-New electrical-Mortgage info: -Purchase price: $770,000 -20% down: $154,000-30 year fixed @ 3.708% (**Current level)-Total mortgage payment (including taxes, ins, etc)= $4,004.24/Month-Total income from rent= $4,930.00-Cash flow: $925.76/month 

Also, through section 8, you can gradually increase rent.