Being that this is more of a study than an actual purchase, I'm really glad to get feedback from experienced members of BP so that I can learn what to look for when I'm ready to pull the trigger on my first investment property.

Back then Philadelphia suffered from the lack of major employers, but has improved considerably since.

.* Tenants pay a NON-Refundable Option Consideration Fee in order to receive that option.

As George mentioned, there may be other ways to structure this or similar investments that will not trigger UBIT.

Also, how much consideration is there for the improvements that were made? 

After a few estimates and in and out the property, I pulled the trigger and got the person down a couple of grand to replace the roof.

Thank you in advance for your time and consideration.  

@Natalie Kolodij, I agree with the others, 2% are harder to find but are out there if you are ready to pull the trigger when they show up.  

Yes, these rents are considerably under market! 

I know it's boring legal language but it's really important for you to understand how the policy is triggered and how the carrier can avoid getting involved.Best of luck with everything!