James,You will also want to separate out "standard of living" items from "unhabitable" items.The landlord isn't responsible for thefts, vandalism, or the neighborhood going down the drain...He *is* responsible for major pest infestations, heat in winter, a plumbing system in good repair, getting rid of pre-existing mold, etc...

The LAW for establishing a pre-existing relationship with an investor is "having an intimate awareness of one's financial ability to invest."

clarification: when the property was purchased, tenant had preexisting lease which is scheduled to expire in a year to pay rent to the previous owner.

In Tax Free Wealth by Tom Wheelright, he talks about doing cost segregation for all of the pre-existing stuff like cabinets, appliances, floor coverings, parking lots, fences, landscaping, etc.

To prove this, you must be able to demonstrate that you have a substantive, pre-existing relationship with every investor before you make them an offer to invest.

Would it provide value to you as a building owner to have a preexisting relationship with a company that can put you in the right hands when you have a need?

It is pre-existing to my tenants and they appear to be clean people. 

Hi Patrick, A few things to think about:You'll need to find a property management company who will manage any deal that you buyYou'll need to meet the net worth and liquidity requirements to qualify for a loan You'll likely need someone with experience to also sign on the loanTypical structure between the LP and GP is a preferred return  and a 50/50 to 70/30 profit splitYou can have up to 35 non-accredited, sophisticated investors with a 506(b) offering, as long as you have a pre-existing relationshipAlso, do you have previous real estate experience?

The plan is to sell either one or both and buy either a lot and build or a preexisting SFH.  

Unless you have a pre-existing relationships, there will be no angel investors who will shower you with cash.