The house is in rough shape so we'll be doing a good bit of work:  new roof, windows, flooring, cabinets etc. 

I had a half-vacant duplex I purchased where the upstairs tenants were doing their laundry and evidently the laundry for their friends/family as the washer and dryer (owned by the tenants) was running multiple times a week for hours on end when I was there rehabbing the first floor unit. 

You will be able to see the floor plans, colors and finishes that are selling right now.

A water heater will often last 9-12 years, I saw one yesterday at an inspection that was 24 and still cranking.Also consider non mechnaicals like floors, light fixtures and interior doors and trim, kitchen cabinets etc..

Justin, Spoke with my favorite broker today and he believes that the rates are floored and will not go lower. 2.8 is unreal, and if you can save 275 a month and plan to stay long term - it sounds like a slam dunk.

He designed/remodeled a kitchen and replaced all of the flooring in one of my units. 

Flooring (they look terrible in the pictures and not long lasting)6.

I refaced the cabinets, new flooring throughout.

Most likely you have CMX2 or CMX2.5 zoning, which is Commercial Mixed-use (CMX) by right, which means you're actually required to have ground floor commercial across the entire frontage of the building and for the first 30' of depth, then can have residential in the rear (beyond the 30' depth) and on the floors above.

If not then need to budget for floors 10 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life spa, etc.