Seeking advice on a 8 Plex deal using rental properties calculator

[Luke Miller]

Here's a 8 plex I've been looking at in San Jose,

Owner is asking 2 Million and has rejected 3 offers 1.7 mil, and 1.8 mil.

The property is located right off of the 87 in S. San Jose. It is close to a large new apt or condo complex. It is in rough shape. All section 8. very run down and minimum maintenance.

I have not seen the inside of the units as the realtor informed me that all offers are subject to inspections, which I believe means I wont be able to inspect until I've made an offer?

I estimate the minimum repairs to be $50k. But could be higher.

My plan would be to remodel one unit at a time. I could do a lot of the work and hire inexpensive help.

I would need to fund the entire amount. I'm not sure how that will work but I will be contacting some hard money and private lenders tomorrow to find out and learn!

Attached is a screenshot of the rental properties calculator formula.

I would love to know any and every mistake I've made working this up. 

When using private or a hard money lender with the plan to refinance asap, how do you figure loan interest rate? The initial rate or the estimated refi rate?

Also I did not know what percentage to put in the typical cap rate for this area, any help with that would be appreciated.

I believe once remodeled this complex could demand about 15% rent increase.

Thanks for taking the time and for any advice you can give!