- being able to use projected rents when purchasing a multifamily to be able to qualify- ability to convert properties and increase or decrease units@Abel Curiel - you are correct - rates tend to be higher- normally 1/4 to 3/4% higher depending on factors and timing. 

For example, how is the structure designed if only one person is signing off on the loan?

Dirt in AZ is still fairly cheap and available, with that will be the expansion.Last week a new freeway loop design was announced in the area we are discussing!!

On our own projects, we always make our own assessments of rental rates, and there are numerous resources for this data once you know where to look.You need to determine the business plan, i.e. duplexes vs. larger project, then have an architect layout the design on your chosen path, then run a set of number (proforma) to determine feasibility.

This method leaves a lot of stress and unknown factors off the table and limits the pool of potential buyers to serious investors instead of dealing with the potential issues of individual buyers looking to buy a owner-occupied unit. 

In the future, refusing to move something should be a red flag, and if you cannto properly inspect something, just factor full replacement cost into your price.

Bottom line, due to many glorious unique factors for me there was actually very little difference.

If you're using the median rent for NH (which is factoring in luxury apartments and the Seacoast), you're going to be way too high. 

Here is our criteria for the LTO's:- We build plans/designs already in our portfolio that we have built before, so we know the costs.- We only build our LTO's on lots/land we purchased in the recession at below market value.- We have a great relationship with our lender, therefore a very competitive rate. - As developers we can build these in house so we don't have outside builder/developer fee's.We follow a very aggressive strategy on this investment. 

While population growth is an important factor, its not the whole story.