What if it costs 20% to sell?

These loans are structured with a combination of a first mortgage from a conventional lender (typically covering 50% of the project costs), a second mortgage from a Certified Development Company (CDC) backed by the SBA (covering 40% of the costs), and a down payment from the borrower (typically 10%).Bridge Loans: Bridge loans are short-term financing solutions used to "bridge" the gap between the purchase of a new property and the sale of an existing property or the availability of permanent financing.

I got an appraisal prior to starting and my numbers looks like this PP: 137kClosing costs:5kRenovation: 230kprojected holding costs: 26kARV: 620-650KEstimated rents: conservatively--> $4400/month.

If you are looking to rehab, it is more efficient and cost-effective to rehab all units at the same time. 

Looking out for suggestions @Kaushik SarkarIf the equity in your properties is your only source for new investing, and the new property you are buying still cash-flow's with the cost of your borrowed money (from your properties), there is no reason to not use it as an investment vehicle.  

Have not had a 'issue' selling in the past five years..I would say the additional development cost of an extra bedroom/bathroom are probably well worth it in the long run..Good luck. 

What made my investor interested in this deal was being a corner property you are able to build a full 3rd story addition by right which would massively increase the value of the property with similar 3 story properties trading in the low 600k's.

That could also explain why the costs were so much higher on the DSCR estimated you received. 

It's softening, despite the YoY increase there's deals still be had there you just got to find them.

(Loan to Cost) Can you find a private guy to lend you high LTV for short term?