I would be self managing the property because I know the area well, have local connections to help out if in a pickle, and could get there in a day drive if need be. 

As RE developers we all know how important it is to hire good, reliable residential contractors. 

@Frankie Paterno In most places you will likely find that your $1.2MM will go much further with existing built as opposed to developing.

I am not the most technical person but in this day and age, not being technical is even more reason to welcome opportunities to use platforms that help develop that skill. 

I would talk to some lenders  getting land loans and development loans with no experience is next to impossible starting out.. 

Excited to join the BP community.About myself - I am a principal of a RE development company and co-founder of an proptech company. 

I primarily work as a part-time CFO for new (and "old") real estate developers and investors, primarily helping them financial analyze their deals and finding them the best rates and terms for financing.

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

Have you considered using a self-directed IRA to invest rather than cashing it out? 

If there is no obvious reason, we know the staff still sometimes can develop a superstition around that unit.