Does anyone know, or have a good idea, about the difference in returns on entitling & developing the land for each scenario, with final objective to sell to a builder to build and sell the structures him/herself.  

In fact, someone just called me last week and had a non-performing rental package that they purchased in the same fashion and the prices they bought at, considering the actual condition and historical performance of the properties was too high in my opinion. 

I feel confident we will have it occupied and possibly at a higher return than anticipated at closing.  

I doubt you'll find a MF that you can get into for 40-45k that will give a similar return that isn't in a terrible neighborhood.

A non profit school program acquired the assemblage 30 years ago and built an infill structure and an addition in the rear.

At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu.

But 3 years ago try to raise money and give returns on paying 100% cash, investors would not do it because the IRR s were not competitive to the max debt operators but we see the outcome..

However, this may also affect returns and management burden.

-LTR we have 60 days to return the SD. 

Institutional lenders will look at your non/short employement as a negative.