Please help me decide on how much to deduct , if anything. 

He than decided to send me an email stating how unhappy he was that I didnt use him for my loan and that I should have pleaded my case, which I feel I did when I sent comps and asked for a loan.

Best of luck, whichever way you decide to go.  

So, my advice is, go back to your PM and have a serious conversation about your expectations as the owner and, be willing to listen to their expectations as the PM before you decide to fire them.

He cleared the property and had an engineer draw up plans, but then decided he was too old to start a new project.

You have to somewhat sell yourself but the project is more important to those that fund here and there....what is the funders profit out of the deal, can be a deciding factor, again, for those who don't know the business. 

because you’re on the right path by deciding to stop waiting till you’ve read every book written before you pull the trigger. 

I did Army ROTC program here at the University of Illinois and decided to jump into real estate after graduation. 

My idea involves knocking down some walls to convert 10 motels into 5 apartments.What should we watch for if we decide to invest in such a big project?

I've read a lot about the headaches that can come from D neighborhoods...If you're willing to handle some possible headaches in exchange for some potentially solid cash flow, then go for it and keep us posted as time passes after you go for it (if you decide it's worth it)!