Hopefully in a positive and helpful manner rather than judging and criticizing like some, which thankfully is pretty rare. 

Staying positive because I know the benefits, and I am committed.

In one of my reports, all these metrics are positive, but this one is negative.

The second position lender will get nothing.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

See if you can get a positive result on this deal as quickly as possible and then figure out the mistakes and next steps.  

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

Since you already have construction management experience, some lenders may consider your resume, but most will still require financial backing or a strong partner with prior new construction experience.To strengthen your position, you could:-Partner with an experienced investor or builder who has completed similar projects.

Instead, use frame control—position yourself as the reasonable one.

BUT that $170,000 would give us the potential to buy a few more long-term multi-families.I'm absolutely positive that there are things I'm not considering, but any help, opinions, and considerations would be appreciated!