Also, a great nugget I heard on the BP podcast this week (I'm working my way through all 600+ episodes and currently in the mid 200's) regarding analysis: we get hung up on numbers like CoC returns, cap rates, 1% rule etc and look at those as absolutes.

To take this one step further, let's take another hypothetical where i have suspended PAL for an investment asset that I dispose and 1031 to defer cap gains and dep recapture.

However, you'd probably want to cap it at 80% LTV to get rid of PMI. 

Are you going to buy a 2% cap rate multi in san fran if you can get 6% on a c.d.?

I've used the following assumptions, which I think are broadly reasonable, depending on your asset's location/deal profile:5.5% cap rate65% LTV IO financing @ 3.5%Net Operating Income of $203,500This gets you to necessary equity slug of ~$1.3-1.4MM after closing costs to get to $120k/annually of NCF after debt service. 

Most others have already addressed the issue of what to do regarding the shoddy work and all, but ... the LEAK itself "may" not be in the brick/mortar or the chimney cap. 

You cap is like 5.7%..

Yes, interesting as I know of a lead on a 25 unit in Gastonia class C property listed for $1.45 mil cap rate 6.5 to 6.8% 100% occupied. 30 to 34k annual cash flow 10 year average.

I have used Venmo but it's strictly a cash transaction, they charge 3% like Paypal on CC's and have an amount cap.  

Back of the envelope example:50lots x $400 lot rent x 12 with 40% expense ratio at a 10 CAP = $1.44 mil.