And then the last hurdle is that driving miles between your home and your rental properties by default is considered to be like your "commute" to work, and your commute doesn't count as business miles. 

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

I looked at Sapphire pretty hard last year, and made a couple of offers there, but in the end decided it wasn't the market for me.

So in my mind it would be best used as a last move into a REIT you never sell.  

But many of my clients are getting awesome deals in the last few months, whether on or off the MLS.

We keep telling ourselves "this is the last one" then decide to do it again.

Also the government always pays late (here in Indianapolis last year it was 7 months late!!!)

If the insulation is in decent shape and not covered by combustible insulation, and not terribly overloaded, it might last many more years.

Ask when they last requested a rent increase, what the request was and whether or not it was accepted.

I was last getting terms around 5-6% for the first 5 years, then floating with prime, 20 year term.