Question:   Since we did a considerable amount of sweat labor ourselves and spent quite a bit on appliances, paint, flooring, plumbing, electrical, materials, and contractor labor and materials, do I need to write up an itemized list of the labor and materials and give it to them, or just write a list of the things that has been done?

Please draw up a legal document right now with your friend, while you're still friends, that gives directions about the partnership.

If he's long term AND has a low rate of turnovers and vacancies, this *might* just trump all other considerations - - aka you're getting added value there.

Congrats on venturing out into the commercial world...that is a different ball game, but lots of experience to draw from here on BP.

Yes, good school districts are a draw and add value, but other areas sell too, maybe just because people find it easy to get to work and affordable.The numbers make this look like a nice deal. 

I will diffidently take in some of your guys consideration.

The audit usually identifies opportunities to reduce utility costs considerably, and most utility companies provide these services with little or not out of pocket expense.

@Shawn Ilg charges about half that for an LLC if you're still wanting a 2nd opinion on a lawyer drawing it up for you @Collin Schwartz.  

Take into consideration that for this first property I will be using a 203k loan to roll renovations into the mortgage.

That is considerably more than I paid last year.