So what was the outcome of this, any progress?

However, even if we use your numbers, this is a very poor deal.Gross Operating Income $1,519,291 $1,559,291 Less Expenses $518,179 $472,297 Net Operating Income $1,001,112 $1,086,994 Debt: ($9,975,000, 20 year, 7.5%) $964,296Cash Flow: $3,086 per month ($36, 816 per year) or $14.82 per unit per month.If anything is not as you hope or anything changes (like your debt adjusting), this could easily lose a lot of money.Using more realistic operating expenses, this deal is even uglier:Here's how I would evaluate this deal:Gross Operating Income $126, 608 per monthOperating Expenses: $63,304 per monthNOI: $63,304Debt: $80,358Monthly LOSS: $17,054I would suggest contacting the National Apartment Association or another apartment/landlord association and researching the operating expenses issues.

What would your plan be as far as evaluating repair costs, financing and exit strategy?

So when you are evaluating these low income properties, keep in mind all of the little things that its going to take to make it rentable for Section 8 and little kids.

If I were evaluating this property for myself, I would evaluate it as if I were getting 100% commercial financing at current rates.

I'm a Quality Assurance Evaluator for the Air Force by day and an obsessed REI beginner by night.

You'll lose your shorts on those.No, you don't count the down payment to do the evaluation.

In general what to commercial lenders look for when evaluating loans for apartment complexes?

Hard to evaluate without knowing the details, but these sound like short sale situations.Jon

Hi Brian, Welcome to Bigger Pockets the advise and information on this site will really help with those 1st time jitters as well as provide sound guidence when it comes to evaluating deals.