4 adults and 1 child in a three bedroom starts to get tight and will drive up certain utility expenses and increase wear and tear. 

They are very accommodating, move quickly and accommodate tight turnarounds and schedules to get us to closing.

I feel bad, and I told them to hang tight and use some fans till tomorrow.

If you are not, you are better off hanging tight.  

This doesn't even include holding costs.I understand you are putting sweat equity but those numbers are tight..If you build you need to automatically profit on equity or else it's pointless.. usually 20% to make it worthwhileGood luck

Being in so cal, i originally had the intent to try starting out somewhere in nevada or arizona but seems like the market is too tight for my budget.

If it continues to be tight, assign parking spots to each unit. 

How tight are your margins with a 30y that a 15y completely kills them and causes you to have to subsidize payments with your reserves? 

   (20% down on 140, plus 3K closing plus 5K Reno = 36K)For me, these margins are pretty tight.

Stop holding on so tight to your profits, that your paying more then they are worth.