What I am wondering is, would it be better to accept a 4% ROI and feel comfortable that I know what the HOA is up to, I approve, and that things are probably going to be good there as long as the national economy doesn't falter, or, is it wiser to sell the thing for a clear $160k after expenses and parlay that into two SFDs in a different part of town that could maybe bring in $2000 gross.

The plan is to start very small, and parlay into mixed use long term rentals in the near future.

I don't know James, however, I would wager that he is very successful.

@Daniel Villanueva If you are finding things with a 40% cap rate I'd wager that you're doing the math wrong even 12-15% is extremely high and difficult to find in most parts of the country. 

I'd wager that most of certain states are below the average such as WV, MS, and maybe even MI

There's you're parlay into investment.

I am north AL. you could look at wage rates and adjust.

I'm looking at pulling out 200-250k on the buildings to parlay into the next projects.

I am willing to wager that he did not.

Being that it's septic, I would wager the expenses would be closer to 35%, so your figure of $819,000 should be more accurate.