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.  

But that's not saying it is 100% accurate in recent flooding of Katy and Cypress areas in Houston there were houses flooded that they were not in the flood zone, one of the reasons apparently is the amount of new construction that was done over the past few years changed the flood plain.

I've been surrounded by the construction industry my entire life and, by extension, the commercial real estate industry.

A construction loan perhaps, but at what terms?