Valuing a lot for B-/C+ 4-8 plex construction (beyond comps)

[Mohammed S.]

I am considering buying a 11250 sf (0.26) lot for C+/B- construction of a 4 plex in Greater Houston area.  I am valuing the lot to place an offer in the next few days. Couple of questions that will help me in the valuation:

- How many units/plexes can a 11250 sf accommodate legally and from business stand point? Any rules of thumb.
- What is the construction cost in the Houston for a B-/C+?
- What other costs shall I factor in (beyond closing costs, etc) - any city/permitting costs?

Once I have these costs, I will model the revenue stream at 650 per unit per month for rental income over a 5 year period.

I have looked at a few comps and the asking price is clearly out of line and so wanted to understand what this property is worth to me

Please let me know your thoughts or direct me to a thread/post or an Excel template available

Thank you,

Mo