RE partner wants to go big. Am I missing something

[Phillip Dougher]

Hello fellow investors.  I have a lot of interest and past experience with multi-family homes.  I left the military and in turn left my properties behind.  I didn't like the idea of not be close, so I sold them.  I've been starting to rebuild my MFH portfolio since moving back to Detroit, Michigan.  I have been networking with entrepreneurs and other REIs. 

One has become a close contact and he wants to do a big project in the next six months.  We started to look at building rehabs but couldn't get the numbers to work.  He is a very smart finance guy but lacks the analytical mindset that I have.  He is now considering new MFH construction using manufactured homes.  All we would have to do is find the land.  He has shown me the numbers and things seem to make more sense than rehabbing a building, but I still feel like we're missing something.

My question is, am I missing something?  He wants to put three MFHs on 1.5 acres in Detroit.  He says the budgeted cost is $222k per MFH.  All we would have to do is find the land.  We already have private lending.  Is this everything?  What are we missing?  Please help