I would think it'd be pretty simple to calculate his actual rent income based on the properties current conditions and explain that at best, the tenants in place stay for years to come, he continues doing the bare minimum, and his highest predicted income is x dollars, barring any emergency spending to keep the tenants happy.

@Patrick Philip Keep in mind banks will price there construction debt based on the Fed rate & expect to pay WSJ Prime +1/2 to 1 Point so 10% is not bad from an alternative lender at this time.

@Sherry PattersonHey Sherry,I am an investor agent based out of San Antonio. 

I am based in Tampa but I cover from Orlando to Spring Hill, and all the way down to Sarasota.

The variance will be granted based off the site plan submitted at the time and the variance application.

They can vary based on whether you are in the city or the suburbs. 

I recommend looking into areas near economic bases - close to Nationwide Children’s Hospital, Ohio State Campus, New Albany, etc.

Every STR I have purchased has been a home run and this would have only been a base hit, but that is where the market was.  

Your mileage may vary.

@Bob Stevensgood points, I was just saying that for this poster - who is based in NY - these properties look 'low priced' because they need big rehabs.