Please analyze my multifamily deal

[Orion Flood]

I purchased a parcel already with a variance for an apartment built. Recently I got the appraisal back. 

The ARV stabilized value is $3.35 million

I paid out of pocket for the land and Design/engineering after LTC my loan will be $2.34 million

it is 15 units at on average $1400 per unit. 

Due to my lack of experience in multifamily builds i have no idea what it will be tax assessed as though the area is a 2% tax.

There are only 5 5+unit buildings in the entire major city area. Since I consistently doubt myself I can't see the forest from the trees at this point as I'm about to sign the dotted line. 

the tenants will pay electric and water, there is no gas.

this is a Midwest conservative state.

[Orion Flood]

Quote from @Orion Flood:

Quote from @Bjorn Ahlblad:

The recent rise in interest rates has made everything topsy turvy. By completion date it will be worse again. I would look at an existing asset with fewer variables and a more predictable return. Even 6 months ago things were different.

Thankfully my loan is a 5 year perm with construction loan in it. Meaning when I close and start construction in a few days that will be the interest rate for 5 years...it is 4.25% I would agree with you except there are no such deals on the market at this time. In fact in my midwest city there are only 5 multifamily buildings on the market period...and this is in a semi large city. 

 4.25 isn't bad considering the market