Possible code violations etc. on an owner carry.

[Seth C.]

I have an opportunity that might hit my numbers on a property that has 6 units.

Pros:

Area is decent, exterior is in slightly deferred maintenance mode, 100/door as-is, rents have room to grow, retiring owner will finance at 3.75% on 30 yr amort./10 yr balloon with 20% down. double digit cash on cash...

Cons:

No photos of the interior, and can't view without offer. I am not even remotely local, but that will be the case for any deal I do. We have property in the city and mgmt in place.

There are probably some serious code violations: the building is slab so water has been run over the top of the roof; a garage has been converted into a unit... 

There is no onsite laundry, laundromat nearby (depending on layout might be a huge value-add bonus--I expect this is the case for a couple units, 3 will never have laundry, maybe a common laundry solution, but I don't know).

As far as I can tell the owners are nice/easy to work with, the realtor is the current PM and is ... not very transparent. I would use our other co for mgmt for sure.

Status:

The city will do a thorough code violation check for $200 with a 2-6 week wait, and I can have code corrections included in the contract. Code violation $ might pay to have laundry installed. They are so disorganized the city does not even know how many units are legal without this check!

If the garage is not legal, 1/6 off my bid (great deal for me because it is the worst unit).

The property is in the 150,000 range--it will never be a huge moneymaker, perhaps a solid $10,000/yr cash flow in a year or two.

Questions:

Is this too much of a PITA for $7200/yr as-is?

What else stands out on this?

Thanks!