sell land for cash now, or build house and rent for cash monthly?

[Joe Kato]

Trying to sell buildable lot.  Offers coming in around $60k.  However, if I build a modular home on lot, could rent for @1200 a month.  cost to build estimate at 120k, not including time and effort..  

Running numbers looks like $13,200 NOI, $4500 in mortgage interest first year, so 8700 takehome, or $700 a month. Is this better than selling now and putting cash in pocket and paying taxes on top of regular income in 25-28% tax bracket?