With the hotel we're currently doing or on any other projects he can create an IUL.

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

I have found some information that might be helpful John.There are government backed programs like Fannie Mae Homestyle Renovation Loan and Freddie Mac Home Possible Renovation Loan, in addition to the FHA 203k loan. 

@Thomas FarrellRecommend 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 property in Class D area to Class A standards, what quality of tenant will you get?

A good GC is essential, especially for remote projects.

Renovation cost is roughly $30K.I guess what throws me off is that you say Cash invested: $60 

Any new commercial, industrial projects nearby? 

Draws are almost always held back until you reach certain points in the project or that work is completed.

thanks Ben, I was on a call with them on turnkey projects.

Purchase price: $840,000 Cash invested: $75,000 Sale price: $1,200,000 Full renovation of all 4 units.