I second @Derek Dombeck, once you analyses enough deals you will see that although Cap rates are used to appraised properties often the REAL proforma can show different results.

Account Closed , Sounds like a good idea PROVIDED you can build them at the right price.First i would suggest you talk to Drafts man or Architect to figure out the $ cost per sqf in your area. more often then not building from the ground up is more expensive them buying existing building. and the RETURN ON COST including the land, will be much lower.

Banks often take longer than that due to appraisals, underwriting, etc.Some banks (investor friendly) can close a deal in 2-3 weeks if it will be a commercial loan that doesn't have to go thru the whole secondary market under-writing guidelines. 

However, most often we see these DPA grants between 3% and 5% of the loan amount, and the higher you go the worse the rate....thus, it costs you in the long-run. 

Then I'm told by architects that duplexes are built to a different standard than three plexes, like requiring fire escapes, which by appearances change the nature of the neighborhood, often generating opposition.

It takes a HUGE chunk out of my cashflow, and is often not predicted accurately in pro formas, so do your own due diligence to predict cashflow. 

You can get a sense of how a person lives and what kind of tenant they may be.Ask for previous landlord referrals and CALL THEM ALL.

Very often they won't include repairs or CAPEX.

6) How often are interest payments wrapped into balloon so there are no out of pocket charges to borrower during construction/market for sale of property?

@Michael Hutchinson just to tag along to @Chris Tracy - who gave a great list of paid mentors - an often overlooked resource is SCORE.