You may go on extension depending on how bad the mess really is.If your tax preparer offers it, take him or her up on a tax appointment in the fall.  

Collect some data points over the course of a month or so and base an argument on that. 

Many banks will require at CAP EX set aside of $300 per door per year.Keep in mind if you are paying for a management compay to manage the property of this size it will be close to 10% of gross rent collections.  

Based on the extensive cost, we backed out of the sale before having any money invested.Thanks again BP!

Thoughts on these type of tenants and collecting rent this way?

Three different business modelsPurchasing notes at a discount requires sourcing notes, analyzing notes, negotiating price, and raising the capital to fund the purchaseBrokering notes is an intermediary function which requires sourcing notes, sourcing buyers, and connecting the two by best fitFactoring is the purchase of receivables and requires sourcing businesses with receivables and cash flow problems, analyzing the receivables, negotiating terms, and raising capital for the purchase of receivables, and collecting on the receivables.In actuality, factoring is the highest risk highest return.  

Unless they are doing something far and away from collection of rent, depositing, preparing monthly statements, then 10% seems equitable.

I’ll close this up with my extensive knowledge I have in real estate investment;I heard about 15 podcasts and listened (audiobook) to 3 books on the subject of real estate.

So in the Philadelphia suburbs, you can contact PECO to see how close the nearest gas main is; if it is not close, the cost to extend the main is from $100 to $125 per linear foot of gas main extension.

I am excited to be joining and looking forward to learning and contributing towards this wonderful collective body of real estate knowledge.