I have a property in DC where the roof is essentially flat and you could never see solar panels on the roof.

Roof appears to be new(er).

The problem is that it has two asbestos insulated furnaces in the basement & it has a slate roof.

.- 5 year tenant-Utilities:  All tenants pay their own utilities (Gas, oil, heat...not water)-Water Bill: $650/Quarterly- Paid by owner (me)-Taxes: $1700/Quarterly -Home Insurance: $2150/year-Flood insurance (needed): $1400/year-New roof 2013-New hot water heaters-New electrical-Mortgage info:  -Purchase price: $780,000 ($260/sq ft)-20% down: $156,000-30 year fixed @ 3.708% (**Current level)-Total mortgage payment (including taxes, ins, etc)= $3,955/Month-Total income from rent= $4,800-Cash flow: $805/month (@ $1200 rental per unit).  

The problem is that it has two asbestos insulated furnaces (snowmen) in the basement & it has a slate roof.

It needs kitchens and baths, roof, windows, doors, flooring.Also, there appears to have been alot of structural work done on it as part of the foundation is newer.

I ran the numbers but not 100% sure I'm getting the correct calculations so I wanted to reach out and see if someone can help us.Here is the info on the building we want to purchase:11,052 sqft  $169 per square footNeeds about $100,000 in repairs (roof, electrical, paint, cleaning etc.)Rents for 0.82 cents per square foot.We would put 25% down and pre-approved for the rest of the purchase price at 3.85%A similar comp down the street that just sold:11,747 sqft$163 per sqftrents for $.79 per sqftThe building was move in ready, no repairs needed.When you compare both properties  it would seem that you would come to the immediate conclusion that we are getting a bad deal but I'm just wondering how much to offer.

I can tell it needs a new roof.

Heaters and hot water heaters have all been replaced within the past five years as well as half of the roof.

Replacing a roof or extra heavy snowfall could easily eat up any potential profits.