If you are going to work with others to help raise money for the project make sure everyone is clear on what they are getting paid.

I would suggest you do a bit of additional homework prior to taking on New Development projects.

MF2 is still the only house on the market as most lenders won't let you finance a foreclosed MF1.What does buyer 1 do to have a roof of his/her head?

I add additional profit for the estimated time and difficulty of the project.

The projected rental income would be $6000/monthly, projected cash flow is ~$1000/month, and CapRate at 7.2%.

I mean incompetent, didn't check ages of utilities, didn't go in attics, crawl spaces, test any electrical/plumbing, didn't go on or look at roof...

We backed out of one after the inspection found several problems including 2 bad HVAC units, roofing concerns, a tenant who had torn up his unit, and dry rot on soffets.   

It had been fixed twice and the last time the roofer told me that a new roof was needed because the roof in that area has too many holes already.

I'm really interested in looking at a project like that myself.Matthew, Trevor, Kundan - Thanks for the warm welcome! 

Thanks, the catch is I did most of the work myself, subbed out a few projects like full bathroom re-do :/It was a huge learning experience, but now I feel more confident in both understanding the scope of various projects, and working with contractors for the future.