@Andy Gross There are strategic ways to raise private money capital, albeit as silent 'lenders', not silent 'partners' (I do not partner with my lenders).

Gross Potential Income $132,000 - Vacancy ($10,560) 8% - Concessions, Loss to Lease, Bad Debt $0 Effective Gross Income $121,440 Other Income (Laundry) $2,500 Total Net Income $123,940 EXPENSES Real Estate Taxes $12,500 Insurance $0 Contract Services $2,190 Trash Removal $0 Electric $0 Gas $0 Water and Sewer OR All Utilities $37,500 Legal $1,000 Management Fee 8.00% $9,915 Repairs and Maintenance  $7,500 General/Admin $1,100 Payroll $0 Other $500 Deposit to Replacement Reserve $3,000 Total Expenses $75,205 Net Operating Income (NOI) $48,735 Debt Service Principal $7,384 Interest $24,857 Total Debt Service $32,242 Total Distributions to Members $16,493 Member Contribution $234,163 ROE 7.044% Member Cash on Cash Return 7.04%

Here you go:PGI      Potential gross income   (say you get 1K per month--that is 12K PGI -VCL    Vacancy and collection losses+OI      Other income=EGI    Effective gross income-OE     Operating expenses+NOI   Net operating incomeMortgage payments are not operating expenses. 

I realize the 50% rule is just a gross figure to use to quickly evaluate a deal, but if I were to use this on anything it would seem to always showstop any property.

Gross Rents: 3840050% to expenses: -1920030-year 4% Mortgage (75% of $350k): -15036Cash flow: 4164Your cash to get into the deal is $87,500 (25% down of $350k sale price), plus closing costs, initial repairs and other costs.

The amount that you need to reinvest is your Net Sale Price, which equates to your Gross Sale Price less routine selling expenses such as broker's commission, title and escrow closing costs, attorney closing fees, recording fees, exchange fees, etc. 

Large renovations should make the local news, hit the TV and newspaper, tell the story, the mission, the scope of community involvement, highlight the new tech stuff, any employees.

Pre- 1974 there are EPA lead based paint certification rule and contractors disturbing over a certain sq ft of space.If you do not follow you can face very stiff penalties into the five figures.Older building like that I usually go 60 to 65% of gross expected in costs.

I am looking for 30% gross profit margin.I can go a bit higher on a case by case basis.

I don't know of any cases personally, but that's the reason I've heard as to why some landlords don't divulge any info about current/former tenants - they don't want to get sued.I've heard of similar situations about employers not saying anything regarding current/former employees.