Lets say your NOI is 100k per year. and the cost of the property + renovation is $1milion. then effectively you receiving 10% Cap on the cots. 

Maybe its hard to get good tenants, maybe this is their only issue, or maybe they aren't good tenants and this is just another nail in the coffin. 

You need to nail it down for your specific area.

So I bought nails, three 8′ board on board fences, and rented a home depot truck for $200.

We have to get this nailed down by the close of escrow obviously.2) Our HM lender terms are: $375k initial loan + $100k construction holdback = $475k Total Loan, 10%, 2.5 Pts, 6 mth.

Remember that every property is different, (example owner pays water, sewer, garbage, landscaping, heating vs. tenant pays all those expenses; this can make a huge difference) so your best bet is to nail down as close as possible each line item in the expense column. 

If you prefer we can chat and nail something down. 

Hey @Ryan SladeI think @Dan Heuschele nailed it on the head.

Miguel,Nathan nailed it. 

In NW Indiana, you'll find most MFs (anythings say 3 units and up) trading at a 6 cap on the MLS.