It is held under an LLC.Property value 190k (for 2 lots next to each other - 1 for the house, the other is an approved building lot, however I use it for parking)Debt: 107k left on first mortgage 25 year term, 5% adjusts once every 5 years. 21 years 4 months left.20k left on seller's note 30 yr amortization, balloon payment at 8 years. (4 year 4 months to go!)

Just to be clear you will have to have adequate debt service coverage, usually 1.25 times the net operating income (not the rent) of the subject property.

The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

If you make a mistake you could end up in second position with a large debt ahead of you.

Gross income - expenses - debt service costs = marginmargin / cash invested = COCR (cash on cash return).

I'm in the process of buying an apartment complex in PA with my partners (I'm looking at a 5 unit & 10 unit). The DSCR on buildings I'm looking at are below what most lenders will lend on (it ranges between .9 ~ 1...

Lastly, I think most states have a statue of 3 years to collect the debt from the owner so if they've been delinquent for more than 3 years you might be out of luck.

I did speak with my agent and there was not much information she could find, no listing agent, just the date the bank took back possession. 

Jannelle Nevels once you get possession of the property, check the plumbing, chances are there is a leak somewhere.Also assuming you read the Property Condition Report, which can give you a very high level idea of the condition.Did you get HUDs title insurance or your own?

To remain liquid, I'm considering putting a small amount of debt on it.