A quad is appraised based on comparative market analysis so any implied Cap Rate is meaningless.  

If they won't compare what you'd lose backing out versus what you'd gain failing forward and finding a contractor for the surprise rehab.

How does this compare to the money that will be invested in the project?  

Thank you.Very different markets....The trick in Frisco now is rents are low compared to home prices....they'll move up, they have moved up, but not as fast as home prices so your returns probably will be very low in Frisco. 

When it comes to Berea there are pretty high taxes compared to it's neighbors.

So comparing it to say Box Elder, which is next to Ellsworth AFB in South Dakota, does not measure up. 

We will also revisit the properties as they sell to compare the outcome to our numbers. 

We have a plethora of small multifamily properties here compared to a lot of other cities in the country, which typically provide better cash flow than SFRs.

You're comparing apples to oranges.

Unfortunately, comparable properties in the neighborhood have appreciated over 150k in the last year.