I would recommend reviewing comps in the specific submarket you're looking in and use that as a guide...or asking property managers you may be considering using (my assumption since you're in NYC). 

You've done this before I can tell so forgive my assumptions. 

@Robert Lenfestey If no power poles were at the empty lots when you bought the park my assumption would be that the original home owners paid for the installs, just like your new residents are doing, and, therefore, are their responsibility.

@Tyson Fugett , we don't know all of your cashflow assumptions in getting to $530/door cash flow and 9.45% ROI.I just listened to Podcast #237, wherein @ian reeves earns about $500 per door in Kansas with $41,000 invested.

When we are underwriting deals we can plan for a downturn in our assumptions e.g. increase expected vacancy and decrease rents to avoid overpaying 10.Dispose of weakest assets – this is simple portfolio management, it's key to let go of underperforming assets to free up cash and credit required to buy better performing assets.

@Michael Andres the problem with your assumption is you can't make money in those markets. 

This seems to be the crux of the strategy so if this piece falls apart, you become stuck.What are the assumptions we need to believe in order for 75% of APV to be sufficient to get our money back.

My assumption is with the larger apartment complex is that I could cashflow better than with a smaller multi-family and would be able to service my equity line debt. 

Is the assumption that there is inherently more risk in a foreclosed property inaccurate?

Based upon the limited information you've provided, and making no major assumptions (e.g., extensive renovation/rehabilitation activities), the FHA 223(f) loan program is probably a good starting point.