I know it’s typical but is everyone 100% sure they’ll be able to refi no problem at the end of the term?

We also buy very unloved buildings under the assumption that we will be gutting the building and replacing almost everything ... so typically do not bother with engaging an inspector or engineer unless we see something out of the ordinary (in a bad way) or we are having a Phase 1 done.However, in the beginning before we had acquired our present level of comfort and experience, we sent an inspector into most buildings ... if for no other reason than to provide input into maintenance and renovation planning.

Typical cap rates in the area are around 8% which would result in a value of $312,500.

Materials here are typically at a higher cost.I'd be happy to help answer any other or specific questions you have.

They usually have an interest rate a little higher than a bank but they are typically more ready for negotiation. 

I am not the typical BP person because I just don't believe in "passive" income. 

I figured that before asking and running the numbers but wanted to see how much margin they typically use.

@Matthew Brill  In typical Rich Dad fashion... you found a way to say how can I find the property I want, as opposed to shutting off your brain with the predetermined notion that you can't find it.

Interesting that it is a converted hospital, my first thought is that it's probably built waaaay better than the typical multifamily which is usually cheap as possible.

Here's an example:  typical 1-fam 3/1 1,200 sq ft house will sell in a B to C area in Queens for $700--800k.