In all dense areas, ADU apartments are going up left and right to cure a housing shortage so if you have that much room and the city would approve, it could be a huge windfall done correctly.

I think buying this for $900k might get you closer to where you need to be, but I definitely wouldn't be interested at $1M purchase with 3.6% estimated CoC return.Hope you get the deal done at the right price!

Many chains are building brand new properties right now.

I definitely over improve the properties and I am sure somethings can be left as is.

I just bought a townhome by Edge homes because it was a 6.6% cap, I'm also buying a triplex from FIG (construction starts in October) the cap rate on that one was right around 7%, and I'm buying a fourplex with FIG in Boise at a 6.6% cap rate.  

Anything over 30 days just about everywhere triggers tenants rights and you could get really stuck without a full bore lease.Checking into each tenant will help keep damage to a minimum.

I can tell you that the borrower has no legal right to reinstate the loan at the courthouse steps.

But you can find things in Denver that will cover its own cost, or kick off some cash flow even in the LTR space, as long as you buy right.

Sounds like you are on the right track.

While they look great, in reality, dust & dirt settles into every crack and crevice, so its right in front of your eye.