@Chris Tracy Thanks for the concern and can say I do have a soft spot Memphis.

I feel that the markets are picking up but will climb softly for a period time.

However you also have to factor in the soft costs such as architect, permits, C of O, etc.

Softly remind him that he is responsible per his contract.

Soft costs.

So for meI borrow from bank at 90% of cost.. so say I have a 200k all in project that would be for a 265k houses.. bank loand 90% of cost not to exceed 75% of appraisal ... so 20k out of pocket.. interest reserve build into loan... 10% for soft costs are 26k bring it down to 240k and there is usually 10k of Ut oh.. and net is about 30 to 35k or 10 to 15% of gross.. or 100% plus cash on cash.. the idea in building is you need volume.. so your closing 2 or 3 a month then your making some decent money.

The local single family house market has appreciated 10-15% over last 12 months.The numbers are like this:-Land: 2.65M-Soft cost: 300k-Public work and utilities: 210k-Hard construction cost: 2.86MTotal before construction: 3.16M-Construction loan: 2.86M-Loan interest: 229kSell at 8.8M-Selling cost (commission): 396k-Gross profit: 8.8 – 3.16 - 2.86 - .229 - .396 = 2.15MROI 2.15/3.16 = 68%Total project length is about 2 years. 12/12 for entitlement/constructionMy role: I secured the land one year ago, put in 220k deposit and 30k for some prelim work and due diligence.

They have always paid late..after the 15th sometimes and since i am soft at heart i have let it slide for several years now.  

Unless your rental market is extremely soft (not the case with 60 msgs!)

(Also, none of the workers was wearing protection for their skin, eyes or breathing.)Besides belongings that were in the damaged areas, we have asked that all soft goods be replaced because of the negligence of the cleanup crew, which admitted to us they did not follow proper mold remediation procedures.