When you are wanting to buy in this A/B type of area, expect to pay more for the property, expect a higher level and cost of renovation and expect a rental price that is well above median rent. 

Sam, I expect we’ll end up doing what you suggest to avoid further delays resolving this disagreement.

I think one of the things that would hold people back is the all or nothing expectation.  

I understand that ultimately, the responsibility falls with me...but I also wanted to reach out and see if anyone has a perspective or strategic approach to rectifying this manner. 1) Connect pipe (50ft) - not overly concerned with this aspect. 2) Clean up and have restoration company undo the damage - mildly concerned and expect a few thousand dollars fee (who pays?)

Our first mortgage in the late '80s was like 11 3/4%.  6-7% was fairly expected until the great recession. 

I do not touch any home that doesn't cash flow after expenses and expected vacancy. 

The offer sounds tempting since  the group has to finance about 3M$ (the rest comes from a bank with a low interest) and the building is bought about 1.5M below value, so when we sell we should expect a 50% return when selling which should be 3 years from now.The thing that bugs me is the way the building value was evaluated, i am copying a section from the presentation:"Market activity has shown similar properties consistently trading in the 4.75-5.25% cap range (refer to “Comparables” slide for specifics).

Sometimes cap rate compression is a signal that rent growth is expected.

I really just expected someone to say hello. 

Figure out what percentage return he expects, and then base your equity split on that expectation combined with the actual financials when you buy.