She owned a construction business and it was successful.

The neighborhood is only 4 years old and new construction will close out in the next 12 months.

While I specialize in hotels and commercial construction projects that require mezzanine and equity financing, one of my partners specializes in financing multifamily and mixed-use projects, another in industrials, and yet another in offices in CBDs and Class A retail projects.  

What does it typically cost per sq. ft. for new construction/addition in Durham? 

After construction, which I had estimated at 200-250k, it would have three 1 bed room apts, two 2 bed room apts, one 3 bed room apts and a coin operated laundry for the tenants.

Professionally, I'm a project manager for a commercial construction management firm.

My portifolio lender is going to finance it as a new construction.

If I were in your situation, I would consider properties like these and get a construction loan: https://www.redfin.com/OR/Portland/5330-NE-23rd-Av...It's a darn good deal in a very nice neighborhood from what I can tell, but it looks like it's a highest and best. 

I used to work construction and understand things happen, but they had poor communication and customer service, and I found I had to always be on the phone with them to ensure the project was getting done.

The whole Title III construct is broker-centric and doesn't really fit well with the RIA or issuer regimes.