The building types, based on use, are completely different. 

I know that evealuating mulitfamily is based on income but if he os not able to provide proper financials what should I do?

pricing these days for HML is based on experience  No experience pretty expensive  ..so in my mind first few out of the gate I would do this with an equity partner safer and less frustrating than trying to go HML  once you can show a few successful flips under your belt the HML route will be easier and less expensive..

I strongly advise you base your decision on the 2016 cash flow of $800/month. 

View report*This link comes directly from our calculators, based on information input by the member who posted.

View report*This link comes directly from our calculators, based on information input by the member who posted.

He still says he will have it done by the deadline, but based upon what we have seen of the work left to complete he is not leaving himself much room for error. 

View report*This link comes directly from our calculators, based on information input by the member who posted.

Based on the information above, I am seeing rates more in line with 4.625%/4.75%.

It depends on your investment strategy.If you invest for cash flow (like I do), then absolutely not.If you invest for appreciation, then analyze it based on that (and only on that) and decide accordingly.