I am not expecting unreasonable returns, but just trying to figure out what would be the best market to go into for LTR returns.

Coordinating contractors and maintaining the project schedule were key hurdles.

They are much easier to deal with and there are no hurdles or lender requirements to meet other than paying the note on time every month. 

As others posted, the equity 'partners' and entitlement process are tough hurdles. 

Unreasonable for PM's.6) Very true mate and agreed.

And also, pricing at 7% with that low of a FICO is highly unlikely, unless I am missing something here@Robin Simon I'm not familiar with the quote but confirming our minimum FICO currently is 640 however if there is a partnership (multiple full joint and several recourse guarantors) we currently take the higher of the two median FICOs if equal ownership % Also - 7.625% is certainly in our ballpark currently - doesn't seem unreasonable with our rates right now! 

My hurdle rate has always been 15% IRR assuming a 2% annual appreciation rate (I understand that is low but I like to be pretty conservative buy and hold investor). 

Coordinating contractors and maintaining the project schedule were key hurdles.

If you do not find a free or paid mentor you can get there as well but you may run into many expensive hurdles which is ok too but as long as you dont shy away and understand the bigger pictiure that at the end of the day you are learning and gaining that experienced and will be more savy as you continue your journey.

Closing costs are a little high, but not unreasonable.