Should I buy it? Deal break down. What is a construction loan

[Wilson Lee]

Dyslexia Disclaimer.  look past the typos.

I have a chance to buy a 4 plex! I am bidding on it at auction. Up to $34,000.  The Bank's reserve is 16k.  It is class C-/D+.  We all ready own similar properties and we have systems to manage the demands which comes with this tenant pool. 

The problem? It is a 24 hour closing. Aka no appraisal. We really need to get our cash out after rehabbing it. And this area is the wild west of appraisal values. I will really like some feed back of any one who wants to put eyes on. The address is 913 Cotton Ave SW, Birmingham AL . I have a though of what the ARV is. But I really would like some one to give their opinion with out me casting a shadow them.

Numbers

Asking up to 34,000

Rehab $32,000

Evictions $ up to %1,200

Rent, $500/mo per unit. (24,000/yr) 

We will be buying in cash.  We will use a construction loan for the rehab.  We will exit via a 30 year fixed.

Some other questions.  I never have got a construction loan.  The last rehab we did was out of pocket ($12,000) and we recaptured that on the refi.   So how do construction loans work? 

Oh and I have to buy in 36 hours!

PS

The property is occupied, The tenants refused to pay do to the condition of the property.  They are on new leases with 9 months to go. The current property manager just took up the building 3 months ago. The tenants are now on repayment plans.  I am ready to evict if they don't/can't pay rent.  This county as a 3 week turn around form the date filed.