If it is your first property you can buy another home with the remaining balance and rent out the first property, which is what I'm trying to do.

I mailed 500 out this week and have the remaining 498 going out in two weeks. 

I'd love for someone to prove to me that converting to a triplex in an R2 hood is only a minor variance, though.If you don't mind moving and renting out both units of your duplex, then 10k can get you another duplex easily with 5% down.I think that if you put 10k in renos and tried to refi youd get no money out after all of the fees and filling in the remaining gap to 20%. 

Extremely newbie question, but I'd love clarification.I was speaking to a lead today who's bank statement said they had a remaining mortgage balance of around $500,000.

Per the seller (I haven’t yet seen the actual leases), two of the leases expire in 2034 and the third lease expires in 2019; so the average remaining lease term is 12.7 years.That is a great suggestion on the step-downs on pre-payment penalty.

Next cleaning I plan on pretreating the high traffic areas to remove the remaining dirt.

They also have a 2nd meeting in Worcester if you are looking more out west (They have a holiday schedule coming up with no Worcester meeting the next 2 months and moving the Waltham meeting to the normal Worcester days so just be careful if you try to go to the remaining 2014 ones).  

The seller and I have offered to increase the security deposit to $2,000 to ensure the new owner gets the property as it is, and have itemized the items that are to remain.

So upon closing, the building may remain empty for 1-2 months while I do the repairs and put in a laundry, so these numbers are projected based on my knowledge of the rents in the area:Annual Rent Two 2 Bedroom Apts                   $ 18,600  Annual Rent for 4 Rooms                                    26,260Projected Laundry Revenues                                4,200Total Rents                                                        $ 49,060Expenses: Taxes                                                               4,088Water and Sewer                                              1,600Insurance                                                          1,600Vacancy & Credit Loss (6%)                             2,944Repair Reserve (10%)                                       4,906 Electric                                                               1,800Trash                                                                      840           Total Expense                                                      17,778            Net income                                                          31,282             Purchase Price                                                   134,250          Cap Rate                                                               23.30%          Cash on Cash Return After Mortgage                   91.17%I'm always cautious in thinking something is a slam dunk and there will be some challenges managing the rooms, but there are only 4 of them. 

And, if the lease does not have terms for renewal, then the lease converts to a month-to-month lease, with all other terms remaining in full force and effect.