Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them.

What made you interested in investing in this type of deal?

Ok @Brian Schlosser, it sounds like you have made up your mind to give it a try.

In order to keep pace prices have to go up enough to cover the labor, their margin, etc.

You can save yourself a lot of trouble down the road by staying away from some of the mistakes others made

I am afraid that once the house is closed on, and inspections are made from the DOB that they might find something wrong and open a costly can of worms,  Could anyone offer some advice and/or words from experience for when dealing with open permits? 

What made you interested in investing in this type of deal?

Our first rental house was in Omaha, NE then I moved to Lincoln, NE where we bought more houses and eventually made the jump to multi-family with a vacant and condemned 9 unit apartment building that we spent 18 months remodeling.

From there we made a deal to rent my two upper-level rooms to a couple of guys in his group.

In order to reach a higher cash flow your going to need to purchase one or more 2-4 unit multifamily rentals or a property in a high traffic amenity area for STR - VRBO/AIRBNB.