You can pick up a duplex in decent condition in a C-class neighborhood and hit the 1% rule

There's more low-hanging fruit here than I'll ever need, but hitting the ground running to pick it before land prices start reflecting the new higher values requires more capital than I have and I don't do debt.There are two main companies in the US who do the work of creating and selling eco-mitigation credits on a joint venture basis, separated by the Mississippi river.

Just because you want to hit a specific number doesn't mean the market will meet you there.Great example of how Class C properties may appear like great cash flowing investments on paper - meaning fully rented, paying on time and normal levels of maintenance.

This goes for any endeavor.If you don't know what you are aiming at, you will hit it every time.  

So I think you going to see some lenders take some big hits as well.

I'm concerned with being hit with a lot of "unexpected" costs as the project starts.Any advice would be appreciated.

You want to hit those points. 5.)

U will never hit the numbers ever in renovations as there is no way to know the unknown.. just make sure there is plenty of margin above you all in price and cost of capital. 

The sponsor is likely suggesting that your monthly cash-flow will be shielded by depreciation and you will likely see your 'tax hit' when the syndication disolves which in industry standards is likely 5 to 7 years.

@John Hickey Great job, you really hit a home run when you bought this property in 2007.