@Christian Artuso I only know OOS investing so cannot speak to investing locally as NYC is not my idea of a cash flow market. 

So any cash flow is a return of infinity%. 

Purchase price: $615,000 Cash invested: $630,000 Sale price: $1,500,000 New Construction

Purchase price: $55,000 Cash invested: $440,000 Currently under construction and pre-leased for $6,195/month, this 7-bedroom, 5-bathroom student rental in Clemson, SC, was built using investor cash and designed for high-end student living.

Purchase price: $1,500,000 Cash invested: $35,000 4-Unit building in Wicker Park, Chicago. 3-unit front building with a duplex up and a back brick coach house.

It may make less cash flow/ per month but in may cases in the long run after PM fees and Repair costs, many times it turns out similar.   

For this being your first project and it being around two years, you want to underwrite in a way that minimizes your risk and maximizes your cash flow.Key Considerations for Underwriting This Deal1.

to cut to the chase land deals normally need 50% cash down.. then lender will do the balance short term unless its ag land.. 

@Shayan Sameerif you are putting down 20% cash but borrowing 80% from a HELOC, i still think you won't cash flow.i also get nervous when people throw out entire states. 

If your tenant has been playing these "schemes" then likely they've done this with the previous landlord and gotten away with it - so I hope you bought the property for a good price in order to account for this potential headache.