If covering water isn't typical for your market and the units are in demand you could consider switching this to tenant pay and improve the property's performance. 

It's only 12 years old and one of my best performers. 

Sometimes being the third low ball offer on the property is better than being the first. 

Conceivably, these siblings would either list and sell the asset to your investor (for which you receive commission #1) or you bring in a developer/syndicator.In the second scenario, siblings would partner up and contribute their equity into the formal or informal partnership and the developer/syndicator would bring experience (successful track record), and other resources including builders, design architects, engineers, and entitlement experts for zoning and building approval, depending in the scale of the project.A third choice exists whereby siblings attempt development themselves.

Note that there isn't a third party "Loan Servicing Agent" for this loan because the custodian did not require one at the time the loan was made (I noticed that they now do require one).  

(Not good).The good side, seller was able to provide supporting data for all tenant, 2 of the 3 tenant have stayed over 4 years and the third going to 2nd year.

Looking for some guidance.I presently own a duplex, purchased in 2006 (was my first RE investment) - when I purchased rents were $725, I've now got the rents to $895 per unit, so $1790 per moVacancy is low, however when a tenant moves out, I typically will have it vacant a month or two performing updgrades and maintenance, (have overhauled/lightly updated the bathrooms, paint, exterior doors etc)  Typically when I start advertising the vacancy I have it filled in a month with a good tenant.

Perhaps not enough to obscure the picture.Q1: Is it correct to do an IRR estimation and compare it to the stock market performance?

I am assuming you have some kind of umbrella insurance to cover your liabilities currently, if not, I would also recommend a third trip to the insurance agent.

Third, although not really important, we're able in all cases to lower our interest rates by moving to commercial paper (from 4.25% to 4% for one group of properties, from 5.375% to 4.375% for another group).