Period, So, they weren't making a judgment about the viability of my particular deal.As to the "break-even/lose" issue - well, I've learned so much while working on this house.

Biggest issue is that 2 of the buildings have history of flooding.

Most of those issues can be learned from and addressed in the future. 

I started doing some home flipping from 2001 - 2009, then got into buy and hold.I am at a cross roads, so I recently sold some properties, in an effort to have a portfolio of quality over quantity.Not exactly sure what my next move will be, the big challenge for me has been learning about tenant issues, and dealing with some unexpected repairs, both my wife and I took a course and are IPOANS CAM Certified (Certified Property managers).We only manage our own properties, plus have a couple of hired property managers to help with some out of town units, however, I have been studying tenancy rules, laws, and have become addicted to answering property management questions.What attracted me to join this site, is all the different types of real estate investment people are involved in.I look forward to participating in the forum.Michael P Currie

If breaking the lease would pose any big issues for me.

I have the same issue.

The two main issue with the property are large cracks in the brick basement walls and foundation issues both from settling.

You'd essentially be losing 2% on the spread, not to mention that technically your amortization includes some principle, which means that your second month, you will earn slightly less, and the 3rd month slightly less, etc., causing your negative spread to be even greater.On the other hand, you could try to pick funds or stocks that yield higher and capture the spread.  

Rich, it was full but the city inspector had a small issue with the sewage and the the tenants had to leave within 60 days since the owner did not want to fix it. 

Appraisal came back "as is" and issue free, documenting the room as "[the room] was once a bath room.