How do you know the accurate costs associated with a build this size?

The market will affect someone who plans to buy Non-performing notes in attempts to try get it re-performing as opposed to the investor who purchases performing notes for passive income.

@Joshua FeitI would love to get insight into how these units perform from CAP rate etc. perspective.

That would be a more accurate assessment.

If these funds have non-performing assets on their books, and LPs start withdrawing their money, the funds will be forced to liquidate their NPLs en masse. 

Make sure you get your hands on the historical financials and a current rent roll and perform a rental comparable analysis to determine accurate, post-renovation rents. 

What are  inexpensive yet accurate ways to do a title search?

You want to have a bunch of doors so your performing assets carry your others during the periods of time you've got issues going on. 

@Tom Ott  one thing i can tell you at least how it relates to Portlandia those rent figures are for apartments not houses.. 90% of rental units are apartments in most west coast markets.. not houses like you guys have were you live.so i can see in those markets those rents are pretty accurate for the rental stock many sell..

Hello-It is a SFR, 3Bed/2Bath; they just had their 8 year long tenant move out so fully renovating the place, new vinyl wood floors throughout  (COREtec performance plus), new kitchen -cabinets, counter tops, flooring, new SS appliances, 2 full bath remodel (showers) new paint (getting the gray tones) as well as paint exterior.