But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

As long as you have reasonable expectations of:- Running a 24 hour business (mostly remote but guest communications and emergency maintenance issues)- Managing cleaners (schedule and quality)- Managing maintenance (urgent and scheduled/preventative)You will be fine.  80% of the work is remote, with the exception being cleaning and maintenance. 

These loans that include future rehab will come in different flavors from current 7's to 12%'s in rates with different speeds to close, ease of access to the funds, different pricing and requirements to qualify.Typically the more Full Doc or tougher the qualifications are (like debt to income or DTI req's) the lower your rate/pricing so its a trade off.

If you are a licensed contractor for instance and capable of major remodeling projects as your trade, this would be considered adding value to the property and would risk IRS action.Sounds like "improving" or "upgrading" the place is not allowed.

If you want to move the property quickly and ensure income, seller financing seems more practical despite the tax trade-offs.

I'm in a good position now and don't want to trade a career that is OK for something I don't like. 

I would save up a small emergency fund of a few months worth of cashflow for smaller capex and to ensure you got your calculations right and there are no unexpected expenses 

As a new investor I am working to find the right balance of allocation towards Vacancy, Capex, Emergency, etc.

I do like having a HELOC for an emergency fund. 

You can find some value here in C-class properties since there are emerging B-class areas in these towns.