From your description, it sounds like the property would be zoned mixed use with more then 50% containing a residential component (what some lenders would consider a Tier 1 property).

Some good points already stated above.One risk not mentioned that can be expensive is environmental issues.

With Short Sales nowadays, it is very important to:1) Show and document as much owner hardship as possible.2) Very heavily influencing the BPO, is a very important component as well.As far as the lending institution having the owner carry back leftover on an unsecured note.

The one component needed in providing a decent response is understanding just exactly where you live?

If so, entities such as your State environmental agency and the U.S.

There are too many factors for me to address in a forum post (cash flow vs appreciation components of return, investment duration and liquidity, interest rates, etc) but there are books written on how to assess real estate investment risks and how to price risk via investor returns.Low Risk = Low Return (IRR of 5-10%)High Risk = High Return (IRR of 15-30%) [Note: I have done a deal with a 30% IRR hurdle rate and it returned above that to investors]Meeting the investors' risk/return expectations are a key job of the syndicator.

Some of the conditions they want me to waive are: Phase 1 & 2 environmental study, they cant provide me with current tenant leases, can't provide building plans, surveys, fire certificate, previous building expenses.

When the property was originally placed in service as a rental, the cost of the property was split into two components: land and building.

Your wrong assumption is buying at retail price with no value add component.

I generally understand the math and joined the PLUS membership so I could tinker around with the calculators on BP, which has helped me drill down on all the different components of analyzing a deal, but I certainly have A LOT to learn.