I'm also obviously interested in hearing from any agents/sellers who want to form a relationship and work together on future deals. 

If the water table is high as was mentioned, then doing it on the interior makes sense; the floor is demo'd and excavated until the footer is exposed, excavation should form a trench around the perimeter.

What other arrangements can you make to form a great relationship with a listing agent while remaining ethical?

However, I'm having some difficulty putting together a Pro Forma with accurate local/current construction cost numbers.I haven't yet signed on with a construction company, and am needing this proforma for my investor pitch.

Purchase Price:$78,000.00Purchase Closing Costs:$1,500.00Estimated Repairs:$10,000.00Total Project Cost:$89,500.00After Repair Value:$90,000.00Down Payment:$5,250.00Loan Amount:$72,750.00Amortized Over:30 yearsLoan Interest Rate:4.00%Monthly P&I: $347.32Total Cash NeededBy Borrower:$16,750.00Monthly Income: $1,300.00Monthly Expenses: $1,011.15Monthly Cashflow: $288.85Pro Forma Cap Rate: 8.53%NOI: $7,634.00Total Cash Needed: $16,750.00Cash on Cash ROI: 20.69%Purchase Cap Rate: 9.79%Total operating expenses: $663.83Mortgage expenses: $347.32Vacancy:$78.00Repairs :$130.00CapEx:$130.00Insurance:$100.00Management:$130.00P&I:$347.32Property Taxes:$95.83Income-Expense Ratio (2% Rule): 1.45%Total Initial Equity: $17,250.00Typical Cap Rate: 8.00%Gross Rent Multiplier: 5.00Debt Coverage Ratio: 1.83%ARV based on Cap Rate: $95,425.00Income-Expense Ratio (2% Rule): 1.45%Total Initial Equity: $17,250.00Typical Cap Rate: 8.00%Gross Rent Multiplier: 5.00Debt Coverage Ratio: 1.83%ARV based on Cap Rate: $95,425.00

I mainly see it when we have suburban appraisers who are unfamiliar with the city and will pull comps form a mile away which can be a drastic difference here.   

I am using the insurance quoted in the pro forma from the listing agent - actual numbers, so maybe there's a problem with area and/or condition I don't know about.

What added an even longer time delay in our case is that in addition to 3 of us EACH doing a new SDIRAs, we also needed to form a 3-way LLC (each of the SDIRAs own 1/3 of the LLC) which added 2-3 weeks. 

In the first six months we have raised rents by about 20% and are already at year 3 of my initial pro forma.

However, given the expenses of forming one and that the LLC loans comes with a higher interest rate, we have decided not to form a LLC for the time being.