Granted there is a cost in hiring an agent, Having someone analyze each deal with localized knowledge is worth its weight in gold.

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

Borrowing $200K at 4-5% will cost you $8000 - $10,000 of interest each year. 

I'm curious as to what cosmetic rehab you have to do that costs $27K? 

There's no cost to use, and currently $25 fee for applicants. 

Also your permitting process, type or land, grade of land, if underpinning is required will all play a factor into your cost. 

One month of vacancy has cost you $2,400.

For me the area I was concerned with was estimating costs.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Every project needs a quote and you should be able to estimate the material costs.