All-in cost $145,000ARV estimate $225,000Rents $2200 What made you interested in investing in this type of deal?

Purchase price was $270,000 with estimated repairs (which are almost done right now) of $45,000 (and another $10,000 in TLC for the residential units when they turnover).There aren't many good comps for a property such as this, but most small offices are selling for more like $60-85/sq. ft. and we'll be all in for less than $50.

@Skyy Dugger - Maybe get a tree removal company to give you a worst case estimate to remove the tree with the potential issues you're worried about so you can quantify the risk better to help you make your decision. 

According to zillow rent estimate they should rent out at 1-1.3k.Some of them are already rented out.

I want to do an installment sale contract because they all need septics, which have to be done within 6 months of the sale, estimated at $150,000 including surveying, engineering and permits.

You input your estimated cost of replacement.

On the other hand, are the Indianapolis seasons so severe that perhaps a lot of maintenance comes up that I am unaware of, and that these are in fact low estimates?

@Tina Rubin as an occasional lender myself, I think the second option (new deal/property) sounds a little cleaner and more of the traditional lending scenario - if I’m understanding you correctly.Just make sure you have a good understanding of the higher rate you’ll be paying to the HML and make sure you can still make your numbers work with that higher payment amount.A hard money lender’s main concerns will be the value of the collateral relative to the loan amount (LTV), and whether your estimate of the project cost is accurate.The HML will definitely want you to bring a substantial amount to the table as a down payment to keep their LTV low (65-70% is common), so if you need to refi your current property to get those funds then that might be something you’ll need to look into.If it was me I’d probably stick with a traditional fixed loan on the first property and start out with a private/hard money loan on the second, until it’s rehabbed and stabilized, and then refi out with another bank loan.

If so, estimated cost of construction

Estimated cost of construction- $75k/unitOnce permits are approved, we estimate the first model to be done in 2 months.