You could use 10% (6 to 15%) of the construction cost to get a back of a napkin calculation. 

The right of the Property owners and their successors and assigns, and the contractors or other agents of each, to construct, install, use, maintain, alter, add to, repair, remove, replace, reinstall and reconstruct electrical, water, sanitary sewer, natural gas, telephone, drainage connections, cable television or any other type of utility line, cable pipeline, conduit or other transmission medium, and any and all other improvements reasonably related to utility purposes (“Utility Improvements”) in, over, under, through and across the Roadway.

You can scribble down numbers in less than 5 minutes on a napkin to see if something cash flows and will work for you.

@Cory Jones,I can't speak to Louisiana, but if someone gave me a cocktail napkin I'd submit it.

You said it as if the 1% rule were a “go” signal.I think this property is a good illustration that the “rules” are not “go signals”.Never forget that they are ‘back of the napkin’ checks to see if a property is worth more of your time.I think you’re making the right move passing on this as is, and I wonder, how would the deal have to change for it to become profitable for you?

I would encourage back of the napkin Gross Rent Multiple analysis of properties for sale. 

If it is on a cocktail napkin or some other form I am going to recommend you have your lawyer read it first.

So I did this - back of a napkin type analysis. 

Except in the case of a single-family residence, keep all common areas of his building, grounds, facilities and appurtenances in a clean, safe and sanitary condition;Would love some input here!

For those of you with experience developing small apartments in the PDX metro, what are some of the 'back of the napkin' development calculations you make when doing cursory underwriting?