Costs are too high and I'm into this for over 100K.I have feelers out for someone who might accept my lot as participation for an equity agreement in a new build.

Hi Robert, I always look at the rehab and deciding what I can do vs the opportunity cost of spending my time elsewhere.

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

And the reality was I only put 20% down plus closing costs.

In fact, most just print new shares to get billions to invest when stock price is high and buy the shares back when price is low.

Double the cost of that house and double the rate to 7% and its like $4,000 per month for the EXACT SAME HOME. 

It could be anything... a mistake in estimating, a cost overrun, or something like the place burns down and the insurance wasn't properly taken out, or theft (of the money outright) or theft of materials along the way.    

That can be expensive and will likely cost between 15 and 20% of the revenue (and that doesn't often include the cleaning fees) which may mean that you don't make a profit. 

Now you know, you need to send out 5,000 postcards to get those five deals..You will know the cost of acquiring a customer/property after all this..

You aren't necessarily building that much equity (cost of building exceeds the value) but it is a third option that is a hybrid.Another factor is location.