Help with owner financed properties and house building

[Caleb Sundell]

So in my years of being in the Classic Car game I have rubbed elbows with a lot of elderly gentlemen. Recently, I have been buying up one gentleman's cars and parts as he is retiring, in doing so he mentioned some lots and properties. I went and saw them today, the lots are split into 2 pairs and the commercial property is a 2 garage and office space building (2200 sft). They are located in the Greenville-Anderson, SC area, I don't mind sharing because these are off market deals and I already have a contract.

My question pertains to the lots. I've done some research and a 3/2 in each area go for $150k and $155k. They rent for $1100 and $1025 according to rentometer for new builds. My cost on all 4 lots is $60k but it are at 0% owner financing. My estimations for building is between $60-85k/ea (1300sqft/ea) depending on how much I put into them and two of the lots have $10k worth of forestry on them to be cleared and sold. This is if I build to the standard of other houses in the area. My question is does it make sense to pursue building these and renting them or build them and sell them and take profits and put it into a small apartment complex, of which there are several near me?

Gut check says build them, rent them out, and then refinance and purchase additional properties with the difference.

I will say this is only the second guy I met with this week, I am meeting another one tomorrow to also take over his portfolio and cars too. And is this something I let amortize over time or while I'm young and the market is hot, stretch as much as I can to buy more property? And has anyone else had experience in taking over owner financed portfolios? Anything to watch out for?