For your first project, it is imperative to start with something easy and build up the complexity of the deal as time goes on.

Purchase price: $650,000 Cash invested: $75,000 First industrial development, project consists of 2 warehouses with a trailer drop yard for indoor storing of dry goods & refrigerated

So basically, if a property was first a primary residency before turning it into a rental, than the "nonqualifying use" equation does not apply? 

However, we learned the hard way that not all contractors are reliable or suitable for our projects.

OFFER UPDATE - I shot the offer last night at 375k closing paid (365k basically for him) he countered at 399 but will pay closing . this still turns the deal to a 27% cash on cash 7.6 cap kinda more realistic numbers i would say haha I'm about to respond to his counter so i came here to see your guys' thoughts  thanks for your reply .

While I have enough capital to complete this initial project, I lack the funds for subsequent developments.As I build equity with this first property, but face a shortage of capital for future endeavors, I'm considering my options with the bank.

Invest locally in your city is way better with 5 years projection. 

My margins are small right now and if I have to pay a bunch of income taxes they basically vanish so I'm trying to figure out how this will work and what options I have.Thank you! 

So noobs often fall into the trap of looking at just lower and lower priced neighborhoods in an effort to make the numers work.And the Rehab-R is deceptivly easy to say, but takes 3-6 months and a lot of time from the investor to design, source materials, handle paperwork and supervise the project. 

I have been a project manager for large scale custom homes for over 20 years.