They seem to be pricing a rental rehab at the level of a nice retail home.  

I'm just trying to determine how much more is reasonable while maintaining the upside of the investment.Overall, I want my investments to cash flow but also have appreciation potential and appeal to future retail buyers.  

You would need 30 units at that pace. 

The hedge funds like Blackstone won't buy non-performing notes because it would be bad for their image to mass foreclose on people.In hot markets like mine where (1) MLS deals are one in a thousand (2) the auctions and REOs are overbid and (3) it's borderline illegal to solicit to pre-foreclosure sellers, wholesaling is the only way to go.Most realtors work with retail properties and generally don't know how to price "for profit" ugly homes, tear downs and raw land.

Selling to investors versus selling retail are two completely different markets.  

Contractors make more money generally working for retail homeowners and not investors, so it is a fine line to how much pressure you can put on them. 

Rents are also going up but not with the pace of housing prices.  

I am looking at a project that is a historic building that sits in an Acre and is 8700sf . very walkable to lots of amenities,restaurants,grocery, schools, government offices e t c.in the past i have remodeled SFH ,renovated industrial builings to retail centers (sizes up to 15000sf)Project Scope: i am thinking retrofiting and add an addition and have aprox 32 units of apartments with elevator, and finishes stainles appliances,granite tops, study says that target tenants are milenials,retiress and due to proximity to government offices government employees.current rents go for 1bed 900-1000 and for 2 bd 1100-1200 . the sf need for 1 bed is 800sf ( should be able to rent according to the study for $1200)and for the 2 bed is 1200sf( should be able to rent according to the study for $1400)for this area.14 1 bed x $1000 =$14000 x12=$168,000. year18 2bed x $1200 =$21600x12=$259,000 yeartotal yeqarly income $427,000.00 -8%$34,160)vacancy (study says 3% for this area)=$392,840.00 yerly gross income.using current rents for fast stabilization as the goal is a non recource loan.i have couple questions that i would greately apreciate your input. 1)is it worth going after tax credits and how do i find more information?

Not even on any retail flips I do.

The market in upstate is slowing down a bit for retail, but investor sentiment remains strong.