If you choose to proceed, I recommend verifying the source of the funds as it could be tied to a specific type of compensation.

They may have bridge funding available.

The projected cap rate is 11%-12% which is not bad at all, especially considering that once the remodels are complete, rents will more than double.

Talk to local investors (someone unbiased, not an agent or wholesaler) and experienced property management companies who will let you know rental rates for different areas, tenant base, etc.  

A primary residence on a 15yr mortgage with a 3.1% int rate... a comfortable payment.

So far, I acquired 4 properties and hold 1 for rentals made 150k equity and $400 per month cashflow with 7.25 interest rate.

I have a higher nightly rate because I can sleep more people, my taxes and insurance are higher.  

That's between a 6.5% and 7% cap rate.

Nick - one option would be to raise funds from a private investor that would be willing to take a second position Lien on the 3 unit.

The reason for this is because there is a possibility for interest rates to expand and/or market conditions to soften.