Presumably as items are completed the lender inspects to confirm the work is finished before issuing a check, but they are not asking for nor receiving detailed invoices for materials or labor hours worked.  

Presumably, if you're buying a negative cashflow property, you're going to have to calculate returns from appreciation in order to justify that investment.

Yes, rent is guaranteed, but managing tenants that have been recently homeless, presumably unemployed and hopefully drug free could be daunting to say the very least.

I presume you've searched these forums, found my PETIO Method for escalating abandoned property by now, correct?

Presuming that the house is listed on point, you might want to offer closer to the listing price because you might lose the house to someone else's offer.

I presume it could be easier to find reasonable financing for kinda of anchored center?

. - let me translate what @Bob Bowling said :)Cap Rate is not a good metric of return, but if you use it as such, it uses the NOI (Net Operating Income) as the basis:NOI = Gross Potential Income - Operating Costs (operating costs do not include the debt service).So - the $36,000/annum of presumed CF is the wrong figure to use in a valuation formula since this includes the debt service:Cap Rate = NOI / Value = ($36,000 + Annual Debt Service) / Purchase PriceNow - to Bob's second comment as to why does it matter if Cap Rate really is 2.5%What Bob is likely talking about is that if you buy a building at 10 Cap, force the NOI up by 20%, and turn around and sell at 10 Cap, you will make money in the delta.

Yes, I'm presuming I'll make a huge profit, but I could be wrong it could be destroyed inside...

Presumably, you're also cultivating a buyers-list.  

Presumably under your own brand.... with their clients.... and their insurance.... and no experience (assuming).