Construction costs are up about 40% over the last 4 years.

Hi Melvin,Origination charges = 0 [Covered completely with lender credits]Services you cannot shop for = 2725 [This is the VA funding Fee]Services you can shop for AKA title work = 1723Total Loan Costs A+B+C = 4448Taxes and government fees = 3279 & G Prepaids and initial Escrow at closing = 10007Total cost including escrow = 14455

Currency exchange rates can also affect costs.

I also have experience with retail, both my wife and I started and used to run a clothing shop while we both were busy (me with my company and she with a corporate job), for around 5 years before we decided to sell it.

Worked really well and it didn't cost me anything.

In my opinion, the best thing you can do when building any business (including a real estate portfolio) is learn how to work ON your business, not IN your business. 

Question - Why do the total project costs not include the holding costs? 

And if it did happen, the lender will simply fix the "botched paperwork" and proceed, A lawsuit will cost your friend $25,000 plus paying the arrears on the loan with no guarantee of success.

Aside from the cash-refinance cost itself)3) Does this mean the new mortgage (30-year conventional for the apartments) be based on the $1.8M with new interest rate (at the time), etc.?

Its simply a cost of doing business and paying the fee's associated with the risk.