The risk is that the project is significantly delayed, and you would have to eat the costs of holding and living there, or holding and renting for reduced rent.  

Water/sewer alone are eating up $500 per month, which makes all the difference.Any input on the numbers and what you might consider doing would be appreciated. 

You may want to keep an eye on it.The rates keep going up lately and it will eat up your cash flow sooner or later.

I see this frequently where sellers want to have their cake and eat it too.7.2 cap rate if a C or D asset and C to D area is bad.

You can't have your cake and eat it too.

I had a DEA raid (full on swat with machine guns, helicpoter the whole thing) on one of my nicest properties....talk about a mess...try getting your place back to rent when it is a MAJOR crime scene and all their stuff is there....4 months before I got it back and of course then all their stuff is there and they are in jail...not super easy to serve eviction paperwork to someone in federal prison...anyways...now it is just a war story...haha Keep it up, and when you are done, really look at your processes...my gut tells me you are a nice guy...be a nice buy, just NOT to your tenants, doing that is like letting the dog eat at the table ....they will just go nuts.Originally posted by @Ryan Keenan:Originally posted by @Richard Sherman:Dude-  I know it has been said before but I will say it too1.

Hate to sell in a couple years and eat up all those cash flow gains just in commissions and closing costs.

If there was a new tenant every year and the associated turn cost, then $4000 would eat up about 6 months of rent every year. 

Also, if you choose to proceed, please plan well before closing to keep carrying costs down (so those costs don't eat into your profit.)  

@Jeff Mills the basic problem with rents in that range: $450, is that variable expenses quickly eat up any profit.