The complex has a mix of 1, 2, and 3 BR condos, and the 1 BR units are in the sweet spot for us, in that their price is too low for conventional financing, leaving cash sales and owner financing as the primary options for incumbent owners of single units looking to dispose of their apartments.  

Now if you build from the ground up or do a value add lease up with vacancy you can get a higher cap rate.The ones that are already stable in great area the owners will  not let go at a really high cap they will just keep the cash flow then eliminate their equity gain from buying 4 years ago.

(It's actually a property that I've eyed for a couple years, just daydreaming, & reached out to the owner llc during that time but never heard back). tl;dr My idea so far to purchase would be a short term 12-16 month hard money loan, 80% purchase w/ 100% renovation, with private money coming in to fund the 20% & points, refi'ing into a conventional note with my local lender who I have a decent relationship with when the first note balloons. 

There are two neighborhoods where all my tenants buy in when they become home owners Barnaum and Curtis Park.

During the purchasing negotiations, the previous owner was required to have a new roof installed.This was good or so I thought.What I didn’t foresee was that they used a less then admirable contractor.

Rich, it was full but the city inspector had a small issue with the sewage and the the tenants had to leave within 60 days since the owner did not want to fix it. 

The advantage to these places are they give priority to owner occupants over investors. 

Plus the most successful realtor in the town is also a friend, so I feel safe about all information they are providing.Property Info:5 total units: 4 - 2BD/1BR's and 1 - Owner's unit 1BD/1BR w/ a loft and garage.

CRAIGSLIST (search key terms such as "must sell" "owner financing" "needs TLC" "Make an offer" "Owner retiring") These are all key  phrases of a motivated seller you may be able to bargain with. 2.

In either scenario you should talk to current owners and renters and confirm if this is something that people are seeking.