I looked into this at more than one occasion, because Milwaukee has such an old housing stock, everything is 60-120 years old.Most of the new apartments we see are 4 and 5 star developments with very high rents, this allows to offset the high cost of construction a little better.

I personally like to buy in towns/neighborhoods in which no new builds are possible within 10 miles because all the land is developed.

I ran your numbers through my own development proforma analyzer and it looks really good as a DSCR loan. 

Contractors, unless you have a working relationship with them, normally do not want you bouncing ideas off them.Understand what their hourly rate is, have a discussion with them that you are okay with paying them an hourly rate if they walk the property with you and provide you a scope of work along with an explanation of what you can/can't get away with in regards to improvements.ask them if you go with them, if they can credit you the amount that you paid.Once you develop a working relationship with a few contractors, you can bounce ideas off them and expect quality responses.I do not invest in New York.Best of luck. 

There is so much growth here - population growth, job growth, and companies moving and developing here.

Quote from @Jaycee Greene: Quote from @Jamie Parker: @David Mares The short answer is to build and develop the area.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

Much like by the end of this decade, I will take those same steps to become even less involved with work and have more times with my kids who will be really developing and that will be my focus.The difference once I made money, and was able to make it make money for me I de-risked by eliminating leverage.

This can help you gain experience and start to network and develop a team of people who can help you invest in future deals.  

@Andrea Lucarelli - We are converting our planned airbnb into a mid-term rental here in Chicago because it got denied by the city because supposedly its in a "planned development area".