We have a lot going on and this is a major risk and my partner is dead set to do the deal!

I am guessing a lot of owners just collect the rent, defer all the major repairs and expenses, sell and pass them to the next buyers.

Me and my brother purchased a 1941 4-unit in Silver Lake (Los Angeles) back in 2003 for $560K (top of the market at the time, it needed major renovations, and we had to get rid of the existing tenants -- 3% down, 6.5% interest 30 year fixed). 

With all of the major companies based in Washington, it seems to have had a positive impact on the real estate in the area.

In fact, it’s a major factor in your ability to successfully raise money.

Gradual yearly increases are easier for the tenant to understand and helps offset not only the destruction of our purchasing power but also increases in taxes, insurance, etc.

Currently we are not interested in selling the home, or making major improvements (yes the 1 bath is not ideal), but instead renting it as-is and see how it goes.

Your major limitation is the quality of your credit.

I received the last expense statement today and they are in the middle of a major remodel on one apartment.  

In May 2013, a tornado came close to both properties and resulted in damage resulting in two claims (nothing as major as you think - just re-shingled roofs.