NPV=R*(1-(1+i)^n/i )- initial investmentIn the above formula,R is the net cash inflow expected to be received in each period;i is the required rate of return per period;n are the number of periods during which the project is expected to operate and generate cash inflows.But most folks use the spreadsheet to make life easier (see below)Account Closed,  see if using a spreadsheet makes it a bit more clear. if you NPV is different you are probably using a different discount rate, so check that.

If you're not a full time builder, you're going to have a really tough time building a house and turning a profit.

I also look for a minimum of 8% CoC return.In my market there's not a lot of appreciation (maybe 1-2% annually, if that), so I'm looking at cashflow and loan paydown as being the primary wealth generators.

Take the profits (from cash flow/refi/or selling the deal) and put them passively (LP) in other deals so your money is constantly working for you.

Got a job with a hard money lender looking to generate sales.I can't speak from the lender or broker side but I can speak from the client side.Some good ways to drum up investors to use hard money loans is:1) Real estate investment group meetings.

You are correct SD is not the best market for SFR total profits.

After paying for the water and the electric, what's your profit/load?

It is a niche that you have to feel comfortable playing in, but can be profitable if done right. 

@Henry Perez just curious what kind of net cash flow/profit are you expecting on a 100 unit Central Valley property?

You can follow the same steps that appraisers use, by researching what similar homes are selling for in the neighborhood, which will give you a good idea.My valuation of a property is purely based on the income it can/will generate.