I have worked with a number of investors in the last year that are happy with the cashflow on smaller multi fam in this area.  

Investment Info:Small multi-family (2-4 units) buy & hold investment.

There are a lot of cheaper areas in the Midwest and South where you could take that 500K and buy either a dozen or so properties (with a DSCR) or buy a bigger multi-family.

Also makes it easy for each individual to maintain their own info in multi-owner scenarios.

All systems are "go" for me re: Praxis MF F 6, so here goes!

In application, if someone comes to me on a home they just purchased w/ nothing down, the FHA Title 1 loan will lend them up to 25k on a SFR or 12k per unit on a multi up to 5 units.Jason

I would look at the option of using it to buy another Primary and turning your current one into a rental or buying multi family to cash flow. 

Does anyone know, or have a good idea, about the difference in returns on entitling & developing the land for each scenario, with final objective to sell to a builder to build and sell the structures him/herself. ...

I've looked into the Freddie/Fannie multi-fam financing but with a 20 unit deal I'm just on the boder of qualifying on loan size and cash reserves.Right now I've held my longest tenure properties for 8 years and I'd like to sell but I really would like to first have something else to buy plus I still have two years with more favorable interest rates than I can get right now.

Investment Info:Small multi-family (2-4 units) buy & hold investment.