Therefore, it is essential to register complaints with the housing department.

The risks of that asset going away (essentially 0) are the same regardless of prime location versus blue collar.

I completely agree that the switch to electric is essentially just 'passing the buck.'

We wrote an offer for $40K above listing price with a fast close (as requested by the listing agent), limiting repairs requests to health and safety.  

@Joshua Carter a SIGNIFICANT portion of my due diligence and inspection process requires the utilities to be on.For instance, I run all plumbing extensively to check for leaks, I ensure that appliances are functioning correctly, I check all lights and electrical outlets for functionality & ground, we check the fuse boxes for functionality & condition, we assess the performance of furnace & AC systems, and water heaters, we check the functionality & safety of the gas lines, scope the sewer main and assess water flow, test for radon & meth contamination, and basically give the entire property a thorough "test drive"  --which isn't possible if the utilities are off.  

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Like already mentioned, your focus needs to be on “buying right” especially with your first deal to give you enough margin of safety between the unknowns.

Similar thoughts playing around with leases and CAPX — essentially trying to stress test how much wiggle room there is in the deal from a cash flow perspective (and potentially in terms of pulling out equity on a refi a few years down the road).

Once that capital is repaid in full, the preferred return hurdle essentially goes away and the profit is split per the PPM. 

It helps to assess the potential returns, risk and overall financial performance of a real estate project.Capital Structure: A well-structured capital structure is essential for any deal to maximize returns while a high equity helps lower interest, high leverage helps higher returns.