helpful tips for analyzing land already zoned (condos)?

[Daniel Golub]

Hi all.

After listening to a BP podcast, I thought it would be interesting to look into deals where you buy a plot of land (that is already zoned) for cheap and build apartment complexes on it through syndication, followed by holding for cash flow (preferably). I have already found some in the range that I can afford without a down payment. So I am very familiar with the analysis of small multifamily properties, but I realized upon trying to run this property's numbers, I had a lot of question marks due to its scale. Here's some information on a plot of land I am looking at:

The plot of land is $70,000, in a beach town (not a popular destination, but also not in a completely run down neighborhood)

Has already been zoned/approved for 750 units

Based on demographics I put rent at $1200 per month per apartment 

I calculated a construction like this will be around $7 million.

Basically, I ran the numbers myself, but I know they are not spot on, and I am simply asking for advice from somebody more experienced in this field to help me out by pointing out things unique to these types of projects. Anything from possible tax abatement to the complications of a construction loan to information about construction on large scale builds/holds like this will go a long way in helping me get some far more accurate numbers.

[Ben Leybovich]

Just so we are on the same page - how many units do you want to put up for $7M?