The details:Location: Denver, Colorado located in very hot real estate market in an excellent location within 2 miles to downtown.Land cost: $475,000 currently with small 900sqft home on property Mortgage/holding cost: mortgage is $2800; I will be renting home on property for $1750/month (so I will be paying $1000/month out of pocket holding cost) while we go through the permitting processPermitting process: estimated to run 6-8 months in Denver before build can beginLooking to build five, 3-story townhomes on the lot, 1550 sqft each (about 500 sqft per floor), with detached covered garage in rear of lot for four of the units.

I feel as though we miscalculated something.One unit yields $400 in rent (1 bedroom) and the other yields $800 (3 bedroom).Total Rent: $1,200Duplex Price: $67,000Down Payment: $3,350Repair Estimate: $2,000Closing Cost Estimate: $1,500Total Investment = $6,850We factored in:Mortgage: $340Mortgage insurance (we would have a low down payment): $40Home owners insurance: $67Property tax: $113Vacancy savings: $60CapEx: $60Repairs: $60Lawn/Snow: $120There are no HOA dues.Total costs: $860So, our monthly cash flow should be $340.Annual cash flow $4,080Total Investment $6,850ROI: 59.5%I feel like this return is far too high.Is there something obvious we're missing?

The next investment will have a great chance to be even better than the initial investment.Good luck.

I would like to be able to get as much done as possible and even be able to start construction on the day of settlement.Pre-Hab Work PhaseHire architectHire structural engineerApply for building permitsDesign KitchenChoose tile, flooring, cabinets, door hardware, light fixtures, railings, front doors.Measure windowsGet estimates from 3 GCsGet estimates from 1-2 ECsGet estimates from 1-2 PlumbersI think I might be jumping the gun on getting Permits…don’t you have to own the building for that?

Hey Andrew,If you have a chance take a look at the Spokane market.

From what I heard, banks and credit unions tend to decline loan applications from self-employed people because we're viewed as high-risk.Are there any best practices or tips on how I can improve my chances of getting a home loan?

Don’t miss your chance!

But, chances are, you'd never see a dime.Use BP to gather knowledge and set yourself up for success later. 

We recently just pulled out of one where the inspection came back as a disaster.Part of me just wants to get started on something but I'm not sure if I should pull the trigger or not.ARV 105-110kAsking 65k, originally thought we had it for 61k but apparently the seller never agreed on it and countered with 63k.Closing costs will be around 2k.A previous contractor estimated costs to be 28-30k but my agent [who has a good handle on the market] thinks we can do it between 20-25k.Rent right now is $900 and been increasing.So.

If so, doubling expenses to 31k including vacancies, repairs, 2x utilities would put it at a 11 cap rate.I would estimate lot rent as $350x 60m 189kAnd each home at 29k x9 261kTotal 450k, and these numbers are on the high side.Cap rate at 450k and most aggressive expenses including 10% vacancies and 10% repairs is 14.7Was appraised a few years ago at 550k before 20k homes flooded in our parish, and these were not one of them.