Quote from @Andy Tack: Hi Lance, we are developing a project that is partially in a flood zone also.

Are you planning to do any renovations?

Since the repairs were two owners ago, I would think the town may be a little more lenient with you.With the new kitchen and bathroom, were they existing and just got renovated or were they added on?

@Joe Gellenbeck Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I lived in CA for 20 years, and we had W2 employees in CO and NJ, where we do not own communities.Also, we take much pride in the work that we do to renovate the homes.

AND just because you have experience and a “good deal” doesn’t mean you will be successful trying to syndicate the deal.The first criteria is does the sponsor have the general knowledge and experience in real estate, and the specific knowledge and experience in the property type/location to give the project the best shot at success?  

First, they allow you to make lower payments during lean times, such as during remodeling, vacancies, or when you need to qualify for a loan before completing a renovation.

@Rene Hosman The only time I've seen them is larger buildings that have financing and the success of the project is contingent on a certain occupancy number, but then again what project isn't :) That being said, I'd always write concessions to start on the second month of full rent.

I didn't make any renovations as the property was already in good condition.

An easy flip at 7-10% return might be more lucrative than a larger project that takes longer and more chances for cost over runs.