It all comes to a screeching halt.. materials and labor will come down some I was just at an economic conference and they thought 5 to 10% but these prices for building materials are sticky . 

This is important because your future economic losses are a function of tenant base in a lot of ways.Question 2: Will they be attracted to this location?

This seems like a long term hold so maintenance will be you biggest concern.As for whether the economics of the deal are correct, there is not near enough information.

I see more than anything your timing could not have been better, can you talk about the economic factors that made this such an easy decision to jump in and take on this huge deal.  

Zero cash flow for the first 1-2 yrs had a very large impact to investment economics.

While many of you have been wondering about the future of interest rates and the economic climate, it seems a very overlooked area is diversification.

Either way is appropriate but I don't think you will see interest rates going back into the 4% range until the next major economic cycle.

For example it does not take much space (1 or 2 lines) to enumerate items like the annual % for rent rate bump (for each yr), the economic vacancy % for each year, or the fee % AND dollar amounts in the tables, or table footnote.

. , as is usually the case with distressed properties/neighborhoods (D & warzone), then yes you are getting a high ROI and 'beating other traditional investments' but $50/mo. doesn't really leave you much room for error or the occasional overlooked CapEx or eviction -- nor does it factor that your true and economic vacancy on lower class properties/neighborhoods are much higher and in reality and in practice are a liability even though on paper they look like an asset.  -- BUT if your goal is to get # of properties under belt and 'stretch' your $ then yes it does make sense if you're that type of investor -- remember I did say these are usually the #'s in the first few years after purchase. 

What’s the most economical way of addressing these issues?