Not many are building new in this climate and the cash equity players want to large of a share to inject capital.The other thing is there are so many fractured projects you can buy from banks and re-purpose for a fraction of replacement costs.Material costs are stable but labor is cheap right now for construction.In my area usually they just set up an LLC for the project with a JV equity agreement.

Until we have an expansion of the UGB a classic supply and demand problem will be in play.   

I love your mission and intention of repurposing buildings into housing to fill the housing shortage.

Troy, That’s a classic predicament for remote property owners with a smaller sized portfolio.

As I go through this process, as a total newbie, i'm starting to realize I'm not equipped to understand what the the somewhat classic lending scenario look like for this kind of work.

The way it is accounted for typically is in the irr, where in your rent vs buy decision the irr serves as the hurdle rate for your rental investment.Also are you saying that generally you agree it is better to buy than rent in the classic case but in "your" case it doesn't make sense? 

Classic house hack on the small multi-family, the best way to get started IMO!

Background on me: I restore classic cars / hot rods full time and do real estate in my off time.

Quartz is more stain resistant than granite, won't scratch or scorch, and IMHO, has a more modern (yet classic!)

Another great option for you would be to find some commercial properties you could repurpose to affordable housing that could generate some very good cash flow.