Here is my expected cost:Land: $475kAcquisition Costs (Environmental, Survey, Geotech, Traffic Study): $25kSoft Costs (Engineering, architect, impact fees, permit, legal, closing costs, taxes, interim interest): $300kSite Development Costs: (Earthwork, underground utilities, curb cuts, fencing, stormwater, paving, landscaping): $800k ($400k/acre)Subtotal before vertical costs: $1,600,000 ($80/SF). 

High crime & unemployment. 

Which means I will still need to finance about $400k for each property at about 9% rate (the rate is high because we'll using a commercial loan as we'll be purchasing the properties under an LLC).

At acquisition the seller would be in first position on the property - you're then proposing to have him bumped down to second position by bringing in a construction loan.

Guess what since previous weak tenant was market rent you are losing your ***.I look at high cap stuff when it's few years left ( blend and extend ) or it can be weaker tenant at higher cap rate like 10 cap BUT I want them paying about half the going market rent for the building size or less in that market.

I've got a few mill in rental properties that I've BRRRR'd here in a Oregon, but most of acquisitions have been creative deal structure or joint ventures when we need to raise capital to get to a 50% LTV for maximized cash flow.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Is the supply still low and demand still high with the high interest rate?

Location & Demand: Prime neighborhood with high tenant demand, no more than 2 weeks vacancy over 10 years.Strategic Positioning: Rented/sold at market's lower end with a 8-10% annual cap rate.

Quote from @Carlos Ptriawan: I have very strong opinions about politics and how they impact private property rights, the family, education, small businesses, and a thousand other topics.