Your probably going to spend time on an apt building around 1 year in its entirety, working the property to get it back to 90% vacancy. ...William Bannister - It doesn't take any effort to get to the building to 90% vacancy; but I bet it's lots of hard work to get to 90% occupancy. :)

It sounds like you are going after and owner occupant loan and not an investor loan.

Ask them what their average length of occupancy is.2.

What is an accurate expectation of occupancy, income, and expenses?

Sorry about the delay, I was still working on it.It was a Fannie Mae REO, that included a 15 day owner-occupant offer period.AFAIK, you can't get a loan on a property with no plumbing, and I couldn't see anyone with the means to get a 201k loan or cash actually living in a fourplex in that neighborhood.Apparently, I was wrong, or an investor has fraudulently submitted an offer because it went pending on the 15th day.

Not sure if you'd see that anywhere other than the kitchen, though - and you said that it is in more than one room ...Maybe it could be wallpaper related, if they had (or planned) wallpapering.Since it is REO, it could even be former occupants extracting some "revenge" upon the bank in the form of "abuse of house".

I've had the same experience as Will and Vikram.If you rehab a home to owner-occupant quality, and you rent it out, not only will you STILL have to lower the price to get it sold, but the tenants will most likely trash the place in the meantime, driving the price down even more.

If you know their name, that's great, and if you don't, seek a lawyer, they'll probably advise you use "unknown occupant, et.al" or some such wording.

Very tough times right now in the rental business.I am one of the few landlords I know with 100% occup. right now but I had to pay for it, reduced all my rents 10% across the board to keep my good tenants, and my last vacancy took 5 months to fill and I had to drop my rent 20% from the previous lease to fill it.Everywhere I look are for rent and for sale signs and the tenant quality had degraded tremendously .. credit ratings, background checks etc, which equates to higher damages for landlords and less ability to collect on those expenses .. experience speaking there..Taking on a rental property for a flip is a dangerous game unless you can fully afford to fund the payments for a LONG time and still make a better profit then the risk free rate of return on cash.One bad tenant, not paying, damages, legal problems, and you could be looking a total loss of investment.. which could be considerable to get a mortgage these days.That said:Property Taxes, Insurance costs, upfront renovation costsHouse Age < 10 years preferredRoof Age < 10 year < 5 years preferredInsulation QualityElectrical system ageHeating/Cooling System Age < 10 years < 5 years preferredFloors (Carpets are a hole you throw money into), tile preferredKitchen and Baths (Expensive renovations)You have to be able to accept rental payments up to 20% below the market to get a good tenant and credit and background checks are mandatory .. so longer empty periods are expected right now.Personally, I think this is a great time to begin to build a rental business as properties are available well below rebuilding costsand hence will appreciate but OJT Landlord training will be expensive ESPECIALLY NOW!

See comments on rent ready units above and consider the fact that at least in our area if power has been off for more than 90 days it requires an occupancy permit, unless these units are in good shape and systems have been well maintained or updated this will usually trigger a need for an electrical permit,  Pandoras box.