Vacancy is low, but that's super local, so maybe it's reasonable for your area.What about management?

Tariffs are a factor, mainly on certain materials like steel, but not a huge factor overall   Without knowing many of the specifics, or finish out levels of your project, I would expect to be able to build something like this for around half of what you are being quoted.My guess is the reason for high quotes is that because the demand for construction is so high, and contractors are backed up with as much business as they can handle, they are throwing out very high prices.I would keep shopping, and if you have experience, consider GC’ing it yourself, and hiring the expertise in the places you need it.

We have elected to be taxed as an S-Corp.Just curious if this is reasonable or not.

The reason I wanted to move to 3-family is it is close to my work place, close to beach, and of course, if I can have rental income from the other 2-unit that would be great.

@Glenn Curry, hard money is a great way to get into BRRRRing your first property for a number of reasons. 1.

You want this for several reasons

I'm pretty sure that even though the documents says it ends in 2012, by continuing to accept payments, both parties have (by their actions) agreed to an extension...with no end....or......For some reason, the agreement stated the Option to Buy happened AFTER 5 years, with no apparent time limit. 

I think this might be a better choice that doing metal bars on the windows for the most basic reason it looks better.

Everyone's walking around just looking for a reason to play victim.

Without getting too many more details that is probably one of the reasons why.