Depends on what you have in the deal and what it cost IMHO.$200 mo on a $150k house is ok I guess.... 

I had few options so our cost doubled.  

Blue Gate Capital strung me along until very close to closing and almost cost me the deal.

These methods include: Detailed Engineering Cost ApproachDetailed Engineering Cost Estimate ApproachSurvey or Letter ApproachResidual Estimation ApproachSampling or Modeling ApproachExperience or “Rule of Thumb” ApproachIt’s important to understand the differences between the approaches including which one best fits your property and the reliability of each approach.DETAILED ENGINEERING COST APPROACHThis approach compiles the costs from construction and accounting reports to build a report.

If the project is in Canada then I would look to an attorney that understands international law as it could be more complex.Personally for something along the lines of what you are doing I would look to partner with another developer vs trying to raise the capital as that will be less labor intensive.

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

Even if it was $100k, 32 units would cost $3.2mm to build.  

If you are going to raise equity, you appear stronger if you can originate bank debt at a lower cost than alt. lenders.

You can list properties all over town but if not many are selling and just become withdrawn or expired those marketing costs can eat a new agent alive.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!