Also for me taking it back from tenant and living there myself for 2 years isn't quite realistic, so it looks like my only option is 1031 exchange.Yes, $12K/year for a $1M asset is pretty horrible...

Personally I'd buy and find a more realistic foundation person.

By using nonapproved forms, you force a seller to have to incur the cost of hiring an attorney to review, which no one is realistically going to do because its simply not done in nonattorney states like Maryland.

I certainly think increasing my vacancies from 5% to 8% is not going to help my situation but if you think it's more realistic, I'll try it.  

The deals that I can realistically pursue today are mostly in C to D neighborhoods.

You can find both by asking around, such as here on BP and/or in one of the networking groups I mentioned.Arguably, of the two the mortgage broker is more important simply because s/he can tell you what you're realistically going to be able afford.

My name is Noah Smith, I have marketable knowledge of realistate, investing, flipping, renting.

I currently have a bank owned property under contract the details are as follows:Purchase: 113kRehab: 40k max 60 days, ARV: 215k (I realistically see it selling in the Pueblo market for 200k to 204)10 day close.I own my own construction company so the work will be done by me saving labor costs.Challenge: I have partnered withy son and have a Hard Money Lender loaning 85%aquisition/100% rehab @10%, 12 months interest only.

They can give a pretty realistic opinion for that area. 

What would be more realistic costs to build there?