There were challenging grading issues and limited access from the street to bring in utilities.

At the current price, adding the additional lots would make them about $30,000 per lot, depending on the price of the additional utilities that need to be added. 

@Chirag Mehta For construction costs, you should be around +/- $100 PSF which would include all sitework, utilities, and going vertical with modern finishes.  

The 2.5 bathrooms have been completely remodeled with luxurious showers and fixtures.

Everyone on here is saying that you can do it, but it's definitely not possible if you don't have a lease in place on the unit you are currently living in or can show you are living somewhere else with a utility bill or rental lease  to demonstrate that you are not intending to live in the subject property.

That means if you could get $6,250/mo, have zero repairs, zero maintenance, zero capex, zero vacancy, provide zero lawn/snow/landscaping, pay zero utilities, and pay zero management.

I understand the first parts where creating a win-win deal is key, I just can't seem to find what happens  When it comes to closing real estate transactions, there are basically three ways to do it: (1) do it yourself (2) utilize real estate attorney or (3) utilize title co.  

In one deal referenced the poster highlights a major potential conflict of interest as Capella supposedly used an appraisal generated by the borrowers without disclosing this to investors, who later invested $3.9M to finish a luxury home Capella claimed was 80% complete.

Quote from @Zachary Deal: A lot of investors utilize the BRRRR strategy in those markets as there is relatively high rents compared to the value of the properties!  

Hopefully he finishes this rehab in February as I hope to have him set up an out of town, large (over 3000’) luxury STR in the spring.When he completes that effort, we will be concentrating on getting him a property in San Diego which as everyone knows is very expensive.