We had to keep an eye on basis, make sure each owner had an equal distribution, and keep the banks happy with the amount of equity to asssets so there were outside concerns but for rental I’ve never had to worry about those things. 

I know I could cut repair costs down drastically by doing a lot of stuff myself and if I don’t know how I know people in the trades.

Worse case, if plan for the upside portion aren't approved, I would still see $400k once all is said and done.The only thing I am a little concerned about is the over-all political and economical climate of things in New Jersey... although this particular municipality has weathered the financial turmoil of the past exceptionally well due to proximity to NYC, etc.Is anyone on this site still playing in the New Jersey speculative market? 

My issues are concerning the 2nd floor units in both front and back.

Rents are currently $525 but all the utilities are included which cuts heavily into cash flow.

So far no issues as banks usually only pull title work for a property of an existing loan if they are concerned about the loan getting paid (loan being severely past due) or if they have any suspicions.

Often when we find that they are in violation we send a friendly reminder of their commitments, ask them to remedy the concern and send a photo of the issue resolved.

@Geoff GarberAs several people have mentioned here, and as the Russian proverb entails, "measure it seven times, cut once!" 

He then added, with a 1% annual expense ratio that most advisors charge, that return over the same time period would have been cut in HALF. 

I'm concerned that is too low, although I realize it would increase over the years and would be consistent income.