Lot w/ Approved Plans for sale how to evaluate? Or am I naive

[Jonathan Singletary]

Hi all - real estate agent and newbie investor with eyes on the hunt for my first investment project and I came across a deal in my market that I'd love your opinion on. It's a lot with approved plans for a 5 unit new construction. Shovel-ready lot is for sale at 1.1M (I think I could get it for 1M), build estimate is 1.5M. Demo and foundation dig already done. Plans currently for a 5 unit condo building (range from 750-1300sqft in size) in a neighborhood where similar condos sell for 750-900k each (4.2M total sales). Alternatively, units could rent for a total of ~160k a month. I've identified a partner who is an experienced developer, and also can provide financing. I'd love to make some money out of this of course, but I'm mainly looking to dive in and get experience and have a successful project under my belt. I'll also make a bit from the buy as I am a licensed agent. I don't need immediate cash, trying to build wealth and a portfolio. I definitely see this building appreciating well especially from the depressed market. Selling in 5-7 years a viable option if I go with rentals.

Move forward or stay away?

Move forward with condos or rentals?

Please poke holes!

Thanks!