Inherited a Blank Slate

[Daphne Boyd]

I recently and unexpectedly inherited a small piece of property, 2 city lots inside the city limits of a small town. The land is vacant and there's a pole and water meter available. I believe the city will only allow a permit for one building on that property, meaning I cannot make it into a trailer park or anything. Obviously I want to make use of it and put something on there to rent out. 

I considered a mobile home or trailer as the initial costs would be lower and I don't have a lot of cash sitting around. It would generate the same rent as a home with lower costs.

But I know a home would be more valuable altogether and I could mortgage the property, pull out the equity and move onto something else.

My dream would be to put a duplex there as it would most likely be accepted by the city since it's one building but I could get double the rent and a much higher property value longterm. 

I guess my question is in each scenario, what are the pros and cons of a mobile home/ home/ duplex and what could I reasonably afford to get started with? I am familiar with construction loans and HMLs but am wondering what would be best in this situation?

I'd like to hear from investors who buy and hold or who have been in similar building situations.