Building a new SFH as investment

[Travis Payne]

Good Afternoon,

This is my first post.

I have some land in an area where there is no rental property but seems like there is a great demand for it. I want to split the land up and build 2bed/1bath homes on it. The land is free and clear so no extra cost. I will be contracting the house myself and doing a lot of work myself. My plan is to get one finished and rented out and then start on another. I have approval to start with a construction loan and then change over to a 5/1 ARM (20 years). There will be no money out of pocket because of the appraised value vs what I build it for. Here are my numbers:

$62,500 mortgage

$540/month for mortgage payment, taxes, and insurance ($6,480/yr)

$675/rent ($7,425/yr at 90% occupancy)

$80 cash flow

My overall goal is for retirement so I am happy with covering all expenses and not taking any money out for myself.  I've got access to cash for emergency repair fund.  I would use the cash flow for future capital or for paying down the principal. 

Any input or advice would be greatly appreciated on this opportunity. Thanks!

Travis