A detailed rent roll with lease terms (dates - start/end) including vacant units and floorplan style (1bd/1ba, 2bd/1ba, etc)Tenant responsible expenses (direct or bill back) vs landlord paid (utilities, trash, etc) 3 yrs operating statements, plus YTD for all income and expenses broken out Monthly breakdown of the income statement for the last 12 months if possible. 

If it was broken/damage due to regular wear and tear or plain old age, then you can pay as a good owner.The pet fee is what it is...it stays as a pet fee (as long as its legal there). 

I know a few people who live in the good parts, but I also know they have had cars broken into a few times. 

Adam Abdel-Hafez there are a couple windows with small cracks and 4 are aluminum and 10 wood with many layers on paint, some painted shut, screens broken.

The P&Ls for the past 3 years - broken out by business line.

If anyone out here has broken out this last year it would be awesome for a success story.

They are always broken.

If it's clay it is likely broken in places or if it's galvanized it is corroded from the inside and leaking outside underground.To replace just this one pipe depends on the length of run from the street to the building(s) and if certain sections are under one of your roads or your parking lot.This can cost tens of thousands to a hundred thousand in some cases to fix just to replace the pipe to the building.So that one item only can add up to another 2,500 per door in rehab costs to a 40 unit.Another one is EPA cleanup.You would need to look at what properties are around it for possible contamination and get a Phase 1 report completed.I haven't even gotten into if the building does not have a sprinkler system and the city or county wants one installed to bring up to code.5.You need to look at down trending of rents.With the foreclosures you want to rehab fast and pick from the most qualified tenants to release up.So just on basic info you have posted and not knowing anything else.40 units at 325 rent is 13,000 a month X 12 = 156,000 yearly gross156,000 minus expenses7% property management10% vacancy (your numbers are based off low rent so vacancy upon rehab should be less than going for full market rents)38% operating and expenses55% expense= 85,800 156,000 - 85,800 = 70,200 NOI once stabilized (1 year turn around expected for full rehab and rent up depending on what is needed)Value at a 10 cap is 720,000 before resale costs.Cost per unit for rehab 10k = 400kPurchase price = 150k550k - 720k new value = 170,000 forced equity.You have to remember the level of rehab needed per unit and the expected rents will play a large factor.This is just an estimate.I would find someone knowledgable to partner with if you plan to proceed otherwise you will have angry partners who lose money and multiple lawsuits will ensue when it goes bad.I by no means put an exhaustive analysis here just the basics.

That's the price of doing business as a landlord.Frankly, I've filed for evictions on tenants who have broken leases and moved out early. 

They aren't cracked, but the seals are broken and they fall out of the frames.$5-6k, cosmetic stuff like removing all the damaged carpet and replacing with laminate and fixing sheet rock/painting and other pretty-ness.