I assume it is the lower price points that are attracting you to the areas you mentioned, is that correct? 

Who are you looking to attract?

I have seen other people do this with success, you're simply attracting a different clientele, however, one that would already be expecting to share the kitchen.

The return was not that attractive if one does not hold a year or so.

Putting that idea into action is where many people fail.The best way to attract an investor is with a proven track record.  

.- rent comps checked out vs the planned rent raise & reposition- comparable sales made the valuation of this deal attractive- the preferred return structure was in line with my expectationsI have other reasons which are more specific to the deal which I'd rather not disclose.

If it's commercial I would say go with a white box reconstruction, that way it is an attraction to new tenants who would like to do a buildout, while still being relatively cheap (pretty much demolition, electrical, drywall, drop ceiling, ect.)If it's residential, I would start calling contractors right away to get some estimates of what you need done and try to avoid bringing up the fact that you will be receiving insurance money because then their prices just skyrocket.Let me know how things go!

I'm simply talking in generalities and trying to get some feedback from more experienced members before I venture out there into the wild world of land development and building.People say to start small, and I am ... small meaning 4 new construction SFR's, but with the right partner(s) I also have a different plan for 13 SFR's, ideally I'd like to do both, and plenty more after that.I have a simple yet attractive and interesting twist, something I haven't seen any other developer market in this fashion, and will allow me to charge a premium for these properties.

I'll never understand why people believe that real estate attracts so many philanthropists and humanitarians who are just wanting to help complete strangers escape the rat race.

Ask your self what class of tenant do you wish to attract to a class A property.