Could you elaborate?
Nowadays a 500k (cost) complete reno generates less than 50k profit (timeframe is 4-5 months if you know your way around).
New but small development (2-10 units) return is a bit higher--but in general no more than 25% on the asset (per year). 2.5 times leverage generates 62% or so in a year. But even such low margin, but easy developments are very hard to come by (usu. done through connections, instead of through the open market).
ANC just approved Abdo's new plan on 14th and Rhode Island--I noticed that lot long time ago (of course, his office is next to Carribou coffee, which will be included in the development) but such dragging negotiation/advance expenses are just too risky if my cash has not reached a certain level (say 5 million in this particular case).
