Commercial Rehab/Rental Project

[Michael Shepard]

I am looking at purchasing an old 2 story 8500 sq ft commercial building and am running numbers in the rental calculator. I believe I can purchase the property for $150K and it is going to take about $500K to white box and make functional.  I have an agreement with the bank that they will loan me up to $200K to secure the property as is with no down payment. We will then take out a secondary construction loan and begin work. We plan on just rehabbing the top floor first for $250K and getting it leased then start work on the basement.

What is the most appropriate way to enter these numbers into my calculations? Do I just need to put the full purchase+construction loan amount into the "purchase price" or do I need to enter the $150K into the "purchase price" then the construction loan portion in the the "estimated repair cost". I am unsure as to how the "estimated repair cost"  is worked into the final analysis.  

Any suggestions would be much appreciate!