You need to know what things cost.

I did not want to spend 50K on doing separate meters for where I have my rentals it would cost me this much.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

@Martti Eckert in our opinion, you'll need to be really familiar with construction, including costs, or be able to find somoen on the ground you can REALLY trust (but still verify).

Vacancy hurts a bit more, but the biggest issue with renting out large homes is turnover cost.

I would include servicing costs of the loan and licensing costs.

What costs/fees should I look out for?

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Markets like Texas (San Antonio or Dallas) or North Carolina (Charlotte) could offer better cash flow with lower costs.

Even when we manage to reach a working voicemail,owners often assume we are just another "we buy land" serviceoffering far below market value.Given thesechallenges, we are eager to learn the most effective strategies for locatingpotential sellers and establishing a professional, trustworthy connection thatencourages serious consideration of our offers.Telephone/voicemail is informal, hence casual, hence “we aren’t putting much effort into this.”