If we are doing a value add and assume that occupancy won't stabilize until the 3rd year what would be a good rule of thumb to decrease occupancy in year 1 if you are planning to raise rent by a small amount $25-50 vs $100+ when underwriting?

This is a classic raised ranch (bi-level), 3x2, at about 1500 sq feet, built-in 1995. 

As far as raising the additional 70% of the down payment, you'll need to find additional equity investors, or mezzanine debt.

However, they have figured out the 'game' that they can buy off many problems rather cheaply, they tested you and you took the bait.This is the same disgusting screw the next guy mentality like 'cash for keys' promoted by low snake in the grass 'investors'. 

If it were me I’d do testing if the new phase 1 indicates that it is needed.

I bet 95% of stock investors would take a guaranteed 10% return over the next 5 years.If the fed ever decides there’s inflation and starts raising rents the stock market could easily be even, maybe give or take 5-10% over the next 5 years combined.

How much are you raising their rent and are they otherwise good tenants.

We are raising approximately 600K for a commercial project.

I would raise the post above the new cement and even then avoid having wood touch the cement as the bottom will simply rot over time quicker if they are in direct contact. 

Having grown up in Willimantic (you'll laugh if you know the area), I wouldn't quite classify it a slum, but definitely not my ideal place to raise a family.My question is this: I am highly interested in the BRRRR method, and there are several multifamily properties in the "slums" that I am interested in.