An appliance delivery guy made the same offer to me recently.

The HO6 quotes I got are just to insure the interior and appliances, and they cost the same or more than my own home insurance, which includes roof, exterior, belongings, and the house is worth more than 3 times each condo.

Will it need any major capital expenditures in say the next 2-3 years (roof, appliances, etc.)

New and updated kitchens with ss appliances, new and updated bathroom, floors and walls as you mentioned and curb appeal.

Same with fixtures, appliances, faucets, etc.  

According to agent the rents are under market/I’m currently waiting to receive feedback from a property management company regarding the current market rent and vacancy rates for property.The given Cap Rate: 3.74%NOI: $74,715Unit Mix: 4 one bedrooms/one bath & 4 two-bedrooms/one bathExit Strategy: Refinance after reposition within 2-4 yearsValue add potential: needs updating (bathroom & kitchen), appliances are in as is condition, needs painting, unfinished basement w/ laundry, 8+ car parking lot.Exterior: stuccoSeems the owner pays for gas and water, tenant’s responsible for electric.Below is my underwriting when I applied the 3.74% Cap Rate to the adjusted NOI bring the valuation of the building to $1,180M, For the expenses, I used 55% since the seller's expense came to 35%Since it's not cash flowing, below I adjusted the purchase price to $525K as a potential cash offer: So deal or flop?

We flip in A & B-class area suburbs so its rather difficult to "over-improve" in these neighborhoods for flips because these homes garner top of the line finishes, SS appliances, granite/quartz, staging, etc...

Roof, HVAC, Appliances, Balconies, etc.), determine what the cost to replace them all will be, estimate the remaining useful life of each and then figure out how much to set aside each year so when those expenses arise, you have the funds to pay for it as opposed to reaching into your pocket or taking from the repair & maintenance budget.During the initial ownership period, you likely have to over fund the CapEx budget as you are not getting the full life cycle from these items.

With them in each unit, there is also some risk of hard to see leaks, overloaded/unbalanced washer (noise and rocking) disturbing others, seized up valves (lubricate these at turnover), and oh so much fun to schedule appliance maintenance/replacement with tenants and move in and out washers and dryers... 

Next offer I'm thinking $55k now,  along with justifications (roof,siding, insulation, drywall, appliances,  driveway grading, tree removal, mechanicals, deck repair).