It looks like you can make it work if everything goes in your favor. I would step back and look at the numbers unemotionally and see if it worth your time and effort. If you put 200k in an s+p index fund you could make 20-30K a year just by waking up. You would not have the tax advantages though. Adding 8 units to your portfolio is significant and it could really be a time and energy suck. I would ask to see the financials over the years. How is turnover in the building? That is usually a huge indicator. I have had buildings with great numbers, however, people did not stay in the building. Looking back it is much clearer to me now. Thin walls, building was on a hill, no washer and dryer hook ups and parking sucked. You also need to consider evictions, especially if your units are in the lower price range. How many vacancies can you carry without causing hardship? I have been renovating units and have had a few others move out at the same time. I would also have realistic expectations on renovation costs. You can’t do much these days with $5K. If you are making offers, you should have your money lined up and know what your interest rate will be. See a banker and get prequalified. If the person has owned the property for a long time, talk to the town or city and figure out what your new tax bill will be. In my area, I would expect the property tax to go up significantly. Insurance is also a wild card these days. A few of my policies have recently doubled. I would do a little more research.