That way you remain in control. 

Installing multi-zones on a furnace so each apartment can control their own temperature can be challenging and more expensive than with a boiler and hot water.  

Because this is a rent controlled building, I'd like to keep an eye on value.

Pros: I have control over who the new tenant is, and unit is occupied immediately upon closing. 

We recently had a tenant call code on us for him having roaches and our lease says tenant is responsible for pest control.  

You could learn about controlling real estate from someone similar to Charles Parrish, or probates from Sharon _____ (can't come up with her name who blogs here about probates) or maybe Jim Banks, or some similar seasoned veteran who hosts/organizes mastermind groups, and learn ALL you can for that 10k!!!

I got started house hacking, local, hands on, learn as you go, everything under my immediate control, expanding at a conservative but steady pace as my knowledge, skills, and capital allowed ... learned risk management actually from my career as a spacecraft systems engineer ... basically, you methodically map out all of the risks (ways things can go wrong) then reverse engineer your investment and financial position in that investment to hedge, mitigate, or all together avoid these risks.

You can then hit "control F" to open a search window and search for the "eligibility matrix". 

Going to re-write what you wrote as it makes sense to me -- List price: $1M Income from rents: $200K/annually Building expenses (bills, maintenance, pest control ect) : $100K/annually $1M list price divided by $100K difference after expenses = 10% cap? 

I say usually not always but usually the bigger ones are.And what this means is they control their inventory have the teams either through sub contractor relationships or actual employees to carry out the rehab of these units.. they then have the management company in house and owned by the same people your buying it from.. this leads to one stop shopping as it were.. for the value proposition you have a rehabbed home tenanted usually at close..