But I would not consider what the seller needs to make in determining what I'm willing to pay for a property, especially when youre buying a problem like this.

Quote from @Devin James: Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball build larger homes. average new build in our market is 2200 square feet, 4 beds, 3 baths, 2 car garage and sells for 515k. construction costs lower if design is good and find the median or average home sale price and push that up. my guess is you built too small. 347k is cheap. we target 429-479k price range in columbus ohio for single family homes and also only purchase close to urban core where premiums are 20% higher and we build smaller like 1500 sq ft where price per square foot goes up. 

Not sure on your timeframe, but AZ is currently a buyers market (like I'm sure a most states are) due to a rise in inventory and interesest rates.

A more likely situation is you’d have to offer AT LEAST 7% to her, making your payment $1830 and your payoff in 3 years $265k.

Having a solid team around you like agent, lender, contractors etc.

can check out local apps like eventbrite or meetups

I was looking for more of a meetup type situation with some like minded people, freely sharing information.

With new regulations in Canada like the flipping tax and property gains tax, I want to be mindful of the risks involved. 

Central location works best like you want.

It sounds like you might be looking at more of a custom or semi-custom build.