There are plenty of deals like that out here in CA even where the average resale is $700k+ due to soil issues, foundation costs, permitting and utility fees, etc.

Lower CAPs (7 to 4) should reflect a minimal risk investment - great location, healthy appreciation of value/rents/etc, strong tenants, etc. 

It's hard to say anything without knowing more specifics - type of foundation, problems, soil type, local regulations, etc.

We also include Internet and "television" (along with a flatscreen television in each lounge/living room) in our offering and just bake it all into the rent.This does not mean that we do not monitor and endeavour to control resource consumption - we are always making improvements to the building envelope; have installed LED lighting; use low-flow plumbing fixtures; have programmable thermostats and our own building monitoring system.Our objective is to provide our student tenants with a quiet, healthy accommodations complete with all the needed amenities at a cost which is less than a residence room at the university itself.In that light, @Al Williamson is steering you in the right direction - provide them with amenities not at your cost, but at a cost less than they could procure the service themselves.

And city permitting, working w/ architecture, soils testing, etc.?

NB:im a contractors foreman with an extremely healthy Home Depot line of credit and just about all the knowledge and experience to turn a rehab into something nice.I wont make any rash decisions, its just that now i know i can get into the game im wondering what my next moves should be.

There must also be emergency lighting in common areas.Here is a link from the national healthy housing standards: http://www.nchh.org/Portals/0/Contents/NHHS_Full_D...I hope this helps.Much aloha,Danny

How about you share your actual numbers on things, those numbers will be on your taxes, to relieve some pretty healthy suspicion folks are having? 

The issue is to confirm if the soil is contaminated and the extent of the soil contamination.

Other expenses are about $25k left in student loan debt at a low rate with very manageable payments, and a small car payment.The short version of this is that we both have healthy salaries, we have a good amount of savings after a lot of hard work, and we’re spending a lot of money on rent.