It will be a project that involves some $$ investments.

They will typically ask for 15-20 % of the total project costs and at least 6 months of mortgage payments to fund your project.

Good Condition, under served market, and buying at $19 per square foot.....Projected to be worth double acquisition cost within 12-18 months....The point being that Cap rates are a good place to start but a terrible place to stop your analysis:)  Good luck in what I know to be a phenomenal niche!!!!

I don't want to carry a note forever (love the idea of the income, but I need the cash for other projects), but I'm willing to do it for a year or two.This seems like a puzzle to me - all the pieces are on the table, I just can't see how to fit them all together to complete the task.

In my spreadsheet I'd have more exact math, I'm just simplifying for discussion sake.So, you account for these fees when doing your projections? 

That's my project for the summer. 

we can place new tenants that we vet and move rents to market price.Disadvantage, Longer project time.

The home is about 100 years old and plank style construction (no studs or insulation in exterior walls).It’s looking like all in this will run about $10,000.I was wondering if anyone has gone through a similar project and what the cost was.I’m located in North East PA.

Depending on their experience and integrity, this number may or may not be close to the real NOI for the project.

Good news, you get a city employee to oversee you project.