In the private lending industry, most lenders require experience with renovations before they offer a new construction loan to someone.

In what other industry would a client expect a 25% reduction in fees?

There is far too much variation in what people call "cashflow" to have a standardized profit margin here, but in general I would say that if you have accounted for industry standard and market specific vacancy, repairs, maintenance, management, taxes and insurance and you are profiting 40% after debt you're sittin' pretty!

Given that he was employed full time in a different industry and I was the person with the extensive investment and construction experience I was task to run point on this deal. 

I’ve done this for mobile home parks, self storage facilities, and multi tenant industrial park. 

But he can't compete with us on quality/warranty/service or he would be making alot more than 25.00/hr.I get it in the industry it's important to crunch and save, but as I do in my contracting I do in my real estate.  

If they are all single family houses, then if you do anything else, you may reduce the property value of all the single family houses, including yours.If there is a mix of industrial, commercial and residential, and the zoning allows, look and see what businesses are there, what businesses are needed and with the existing house, and the street viewshed, what businesses you can add that are needed or desired. 

I am in a smaller sub-city that is full of older industrial blight and starved for development. 

My background is not related to RE at all and I have no experience in the industry.

Starting in January there will be about 1500 people coming here for a major industrial job.