If you calculate cashflow based off the HELOC's interest-only payments, you might be unpleasantly surprised when your payments go up at the end of the HELOC draw period or when you refi.

The first being just to build it and hope that there is enough draw to your location to get businesses attentions that they will come to you.

@Joey Palmer try Pen Fed but you must have 3 mortgaged properties or less including a primary to get a Heloc on a rental. 80% LTV, 12 year draw, prime plus 1% and you choose P & I payments or IO payments.

I then queried the data-set for each cohort and computed the median cap rate based on 50 percent of annual median rents divided by the median home value for each respective census tract.I then filtered the data set for cohorts with 100 or more samples to eliminate any potential outliers. 

Yes we are considering dividing the space, but thought we would try another large retailer first.

If you are going to owner occupy and have no intention of drawing attention from the city (pulling permits, or asking for a zoning change, etc) you might be fine.

NOI divided by the asking price.

The other thing is, when you go to pay your builder, you have to bring out the 203k inspector and submit a draw request.

The location could be a draw back like the hi-way next to it without side walk, unpaved road etc.

Worthwhile to note that in the MSA I operate, the rents dipped by about 8% at the bottom of the great recession, and cap rates came up to 6.5% - 7%, depending on submarket.That said, to experience what you are proposing we would have to encounter an economic downturn much more aggressive than the one that began in 2008.I have to be honest - I don't see it...We have to draw the line somewhere in the sand.