Lower COC return for more opportunity?

[Eric Calabrese]

Hey everyone, I'm getting ready to close on my second deal in a year and a half. (Behind schedule) the property only shows a 8-9% return which is low. The reason why I'm even interested is because it sits on a double lot. I found a local contractor who builds these small  homes for about 35k and I know I can add value to the land and also add a extra 12% return in my pocket as well as new construction tax write offs. 

I already called and confirmed with the city I can do it legit. Question to you guys is would you take less of a return on the first property for better long term numbers?

( please take note this is in a city that is looking at a 18-23% growth population wise in the next 10 year's)