Knowing your options make better and more profitable deals1.

I would assume that you'd just simply sell each individual lot to the developer at a set lot price such that your cost to purchase the raw land and improve it to buildable lots was worth the proposed profit per lot.  

We are able to profit a whole lot more because we don’t pay a property manager.

Which profits can than be utilized to carry forward into the then "good" MFH acquisition timing of things. 

I’m Jorge Vazquez, a licensed broker, investor, property manager, and coach of the Property Profit Academy.

The market is saturated with STR's further from the beach and attractions, so my advice is to be picky about your location and underwrite the numbers carefully to make sure the investment will be profitable. 

I was told the investor pays to lease out the entire flat for 6-12 months and then sub-leases the individual rooms for a profit.

In other words, the cap rate becomes fairly meaningless upon transfer.Your job is to assess whether or not you can make a good profit after buying the asset at whatever the sale price is. 

In your second post you recommend hiring "a legit STR manager and pocket[ing] the profits".

Option C: Sell and cash out.Pros: get 10 years rents profit in a day.