People go to maddening lengths in high cost areas to turn apartments into condos.

@Ahkeem SmithPurchasing a home is a huge commitment with potential mortgage payments being 30 years(depending on length of loan product).With that said - regardless she needs a place to live whether she rents or buys.Is she expecting the mortgage payment to be significantly less than what the rent would be?

I am comfortable holding the note and have done a bunch of research on the topic as well as vetting the buyer.My hang up is this: I have NO IDEA what a good counter offer from me should be on the terms of this note IE; rate, length of balloon, total term length, interest only payments or P&I etc. as well as anything else I might be missing.I have searched BP quite a bit and not found anything that I feel applies closely enough to my specific situation. 

., interest rate, length of amortization, required escrows, etc.).

This period is the hardest time to find new tenants, so we try to avoid it and minimize the length of your property’s vacancy.

Here is what I figured per Brandon's calculator.Section 3: Buy and Hold Cashflow and ROI CalculatorPurchase price (from B23)$250,000.00Purchase Closing costs$2,500.00Repairs$0.00Holding Costs$2,000.00All Personal Contributions (down payment)$0.00Total Investment$254,500.00Total Loan Amount$254,500.00Number of units3Average Rent per unit$1,150.00Total Loan Amount$254,500.00Interest Rate6.00%Term Length of Loan ( in Months)360Interest Rate per month0.005Total monthly mortgage payment$1,525.86Monthly Insurance$150.00Monthly Property Taxes$600.00Other Monthly Expenses (HOA, Utilities, Maintenance, Etc)$0.00Total Monthly Expenses (not with mortgage)$750.00Total Monthly Expenses (with mortgage)$2,275.86Other Monthly Income0Total Gross Monthly Income (Rent)$3,450.00Total Annual Expenses (not mortgage)$9,000.00Total Gross (Most Possible) Annual Income$41,400.00Net Operating Income ($ left to pay mortgage)$32,400.00Cap Rate (for multifamily/commercial)10.00%VALUE BASED ON CAP RATE$324,000.00Cashflow per month$1,174.14Annual cashflow average$14,089.73Now I know there is no maintenance or vacancy expense in there with that cash flow of $1174/month, but if we subtracted $517 for that 15% it would still be @ $600/month cashflow.

Ive spoken with many apartment owners at length, and haven't found one yet that isn't doing extremely well or regrets the investment.

If you can show the K&T is no longer hot I would be surprised if they gave you a problem, but then building inspectors and city workers constantly amaze me as to the lengths they will go to hassle "rich landlords."

For example:1) Length of time to build2) Exit Value, profit spread, recent sales supporting exit value3) Construction draw process4) Construction commission structure (how much will he charge as a GC fee, how does this affect me in the case that we were doing a profit split)5) Can I walk thru previous and current deals?

A lot of investors in the area are seeing the same thing and we have discuss it in length at the REI meetings.