Although we were slightly over budget we were able to hit our target on scheduling given the scope of project and amount of unforeseen conditions we ran into through the process.

What should I look out for, and is it even remotely possible to do this project for ~85k?

Personally I don’t have this issue as I am both and have my own crews so I have the best of both worlds and even with that problems arise on a weekly basis that need attention.I think the happy medium is an experienced project manager to act as the liaison between the two parties.

From my experience, I have seen that investors typically start off with SFR before jumping into a multi-family project.

When all is said and done I project an NOI of about $17,500/yr. 

Just ask your parents what they paid for it and when, compare that to the $1.1 projection you just made and figure out the appreciation over that time period. 

DR and Lennar basically will only buy ready to build lots.. so I have a few larger projects in the works.. 92 lots and 164 lots.. that they swear ( pinky Swear) they will buy from me when I get them shovel ready.. 7 to 10 million dollar risk and they could say no if they don't like what the market is doing.. the 92 I am going to do if they don't buy it I will build it.. the 164 I have to flip or I will not exercise my option at walk away from about 250k in cash I Have in it presently.. but that's the land game .. big risk big reward.. if the 164 goes right I will make about 4 million on  the same 250k invested.. roll the dice right ???  

A project that has a 1 year turn around has a different risk factor than a project on a 5 year or 10 year plan because you must endure a whole cycle which is typically 10 years peak to trough.So if you deal with a  mess which this sounds like then the upside has to be HUGE for your time.

I am most interested in flipping and think some of my skill sets such as managing large projects in my career and a decent knowledge of construction lend itself to this tactic.

These are also conservative projections (if they're not conservative, I'd say to avoid investing with that Sponsor), with good Sponsors often exceeding them.