That's where the deals are.

I agree with @Scott Mac that you should have an inspection done so you know exactly what your dealing with if you really want to rehab it instead of tearing down. 

Not a big deal. 

Purchase price: $2,400,000 Sale price: $3,800,000 48 unit asset in a tertiary market. great upside in bringing rents to marketwe sold the asset after taking rents from 700 to 1000$ per door.our investors recieved year 5 returns in year 3 What made you interested in investing in this type of deal?

Purchase price: $9,800,000 Sale price: $16,500,000 built in 2001 this is a great asset. well maintained and nestled in a nice green corner in the path of progress in the inner city loop.great value add. renovating interiors and raising rents over 125$ What made you interested in investing in this type of deal?

To finance the deal, I'm thinking of using hard money and heloc from 1 of my properties.

Might be a challenge to find a lender that would take that though since most would have overlays on this type of deal.

Both areas can be good, you just have to find the right deal and find out whats best for you.

Only if you would lose the deal or could not find a similar deal priced "correctly" to your expectations.  

Instead of having to deal with the home warranty I sent my maintenance man to Lowes to pickup and install a new one ($2k).