Be careful, cap rates can change for city to city, market to market, neighborhood to neighborhood.

Purchase price: $2,225,000 Cash invested: $350,000 Purchased a 40k sqft ft mixed use building on Main st in Middletown, CT.

I have a different LLC for my commercial buildings vs the rental houses/apartments.

It's even doing better than Columbus, OH, which is starting to fade.Detroit's focus on removing blighted buildings has been key to its renaissance, reducing inventory and improving neighborhoods. 

If you have not run your own business beyond real estate before, I strongly recommend that you get in touch with SCORE (Service Corp of Retired Executives) at www.score.org.They are a free resource (part of SBA) that will help you to evaluate the financials of the company you're looking at buying, build a business plan and to understand what you're getting into. 

I promised that we would not build a new home; the home was his parent's, he wanted it to stay What made you interested in investing in this type of deal?

Some of those building had extreme structural damage that would need to be identified by an engineer or architect. 

Another option you may not have considered is to work with a developer and build a multi-family property in a desirable area, leverage ECO construction benefits available ($5 to $15 per sq. ft.) and cost segregation and bring in a management company to manage the property once it is ready for occupancy.

Spend some time in those neighborhoods and find out for yourself. 

These buildings are zoned like hotels and have all the requirements you need to rent and make money accordingly.