If you're flipping on the other hand, look at ROI using the ratio of cost and the corresponding increase in projected sale proceeds.

I doubt if a realistic expenses projection will come in as low as 20% rent. 

Thus we are now suggesting to owner that he sell to an investor and contractor that could purchase "as is" and complete the project for the comparable $50,000 market value in the area, the owner has refused to sale and is holding us to our lease.

Your goals are awesome but none of those projections will help you get to the right decision on the question you're asking - Refi or 1031.  

I know nothing about the area, but when I did a hotpads search, it seems like your rent projections are towards the outer limits.

Haha I am definetly using a jackhammer, just a good project that will also add some $$$$

I'm expecting the HVAC/water heating to be a much more significant project, as there are a lot of questions I have that I cannot answer about whether I'd need to expand the gas service or electrical, whether I can run small-duct high-velocity in the ceiling easily or possibly along the ceiling inside the unit instead of in the walls, etc.If possible, we also would like to install in-unit washers/dryers in the first and second floor units.I don't know if any of the above would require expansion of the gas or electrical service to the building, or how I would go about setting that up.

I plan to call a bunch tomorrow & stop in with our financial projections sometime this month to see what their terms are.Thanks in advance!

My question: What, if anything, is different when analyzing multifamily projects than single family homes.Thanks for your input, any guidance is greatly appreciated.

Make sure it projects the appropriate CF you require after refinancing.