STRs in SD aren't based on zoning like most cities- they recently passed a very restrictive ordinance and it's based on a lottery system. 

This land was a lottery land given in 1940 to a Clejan an never been use or never seen owner ( abandon).

No joke, I won a small lottery. 3.2m.

This isn't really a choice, it's just maththe discount rate is 6.4% so that's all you need to beat, which is easy, any excess compounds.same as when they give you the choice of lottery winnings, lump sum or payments. the payments come out WAY higher, because they use an obscene rate, but usually the lump sum is so much that it doesn't make much real world difference. the difference however between $700 a month or $1300 (130K @ 10%) does make a real difference.

Both the $1M and the $5K per month are out there and available without a lottery ticket.  

Now the cool thing is  ( at least in my state )   When you hit the lottery or come into some money , like the sale of a house , they will see that judgement and thke the money and pay it off  with interest  , you get whats left .  

But I know I have 3 options: blow my money on toys, vacations or lottery, put my money under my pillow or learn to invest and possibly grow it.

Certainly there are examples of people who end up being successful but there are examples of people winning the lottery or poker players drawing out to an inside straight. 

I saw this on other commercial developments where the developer projected a certain return when the project was leased up.When the project was nearing completion the market had softened a little which hurt the returns in a big way.It sounds like sellers and developers are cashing in on the herd mentality and will be walking away with the most money on this.I haven't been there like others have but I have had talks with others about it.I would say do not throw more than maybe 10 to 15% of your total worth if that into it.This way if something crazy happens you are okay.If you throw most of your money into it you are playing the lotto.Some will hit it big and others will take a big loss when it falls.Odds are with the lottery you will be left in the dust.If I was a seller in that area I too would be cashing out selling the land or building and then take the cash and 1031 into properties that are not over inflated in different markets.The 22 million is an asking price and not a selling price for the apartment building.The only way I would take on such a price or situation is with a non-recourse loan with no carve outs.This way I cash flow like a beast and when the market hits the toilet give it back to the lender and walk away.Under any other scenario you can land big apartment buildings with just as much upside at much lower debt service to decrease risk and market fluctuations.

Insurance is not a lottery your family wins when you die.