SFR for Care Home Analysis - Buy or move on?

[Cindy Margheim]

Fully remodeled single-level home on over 1/3 acre. Zoned to build 4-10 units. Newly piped natural gas, newly installed high-efficiency gas furnace. Year built 1958. Updated 2014.

List price: 349,000

Purchase closing costs: 6,500 (approx.)

Estimated repair costs: 10,000

Total Cost of project: 365,500

ARV: 250,000

Monthly income: 8,750

Monthly expenses: 6,583.21

Monthly cashflow: 2,129.72

Pro Forma Cap Rate: 11.19%

NOI: 40,889

Total Cash Needed: 86,300

COCR: 29.61%

Purchase Caprate:11.72%

ARV is low. Numbers state no equity until year 30. (I know, that should give me a big "move on!")

My question:

Buy and increase equity using the buildable land (putting in additional units for care home or other allowed zoned units. )

Appreciate any feedback. Thanks!