I grew up living in a "house hacking" family, meaning we would move house to house rehabbing and living in the construction zone, and last year I worked with my brother in law on a few rehab/flip projects he has.

Finished two projects so far, one rehab - currently listed and one subject-to - closing in two weeks. 2017 was our year to learn, 2018 will be filled with projects.

The vertical part can run around $150/sqft if you have strong relationships.To give you some other data points, I have three projects going at the moment. 

Those terms could materially change any cash-flow projections you have.

I have a project near college park I’m finishing up a flip.

In most cases these project will fail.

Investing in any Project without taking action is in my opinion a waste of time.

The build was finished, passed by the city, and towards the end of the project asked me "who is connecting the apartment to your house?". 

Using this approach, keeping withconservative rent growth and vacancy assumptions, and factoring in the fully matured real estate tax amount post-abatement, the Y1 projected cash flow of $570,561 ($670,561adjusted down $100,000 to account for the fully matured RE taxes) would value the asset at roughly $11.4M at a 5% cap - a substantial savings from our purchase price of$9.8M.

Check the numbers and not only what you can sell it for, see what she owes to other people or lenders on this project and how much money needed to complete the rehab so you don't end picking up the pieces of this deal.