I think those areas are not particularly the place to start.IMO I would use the models provided by BP, and find a nice base hit, ie a nice property that has a solid but not super return. 

Yes, I will keep you posted.Hey LavetteSprout is a "Non-QM" lender, not an intermediary. 

There's several potential threats to the neighborhood and particularly our street but I'm not sure how much they would affect the rentability.  

Are you using a particular list?

At whatever point in the cycle ground up development is the most risky and therefore always offers some of the best returns, but that being said, at this particular point in the cycle I would encourage you to spend a lot of time assessing the risks and downsides on this potential development opportunity.I would tell this to everyone, but in your particular case you seem to be starting off and lack the experience that is definitely needed to take on a development project at the top of the market. 

(Before anyone suggests using my own tenants, these are small multifamily buildings and in NYS snow removal is a "non delegable responsibility", so when they don't do it - I am on the hook.  

6.125% is not a bad rate for a commercial/portfolio (Non Fannie/Freddie) loan.How much lower are you expecting to get by refinancing since you can't qualify for conventional?

But ive always been told owner occupied properties are cheaper to insure than a non owner occupied rental.

Insurance is non-transferable.

I could get some non interest loans from Habitat of Humanity, if they approve it, then wrap up under the loan when I do refinance it.