Quote from @Allende Hernandez: I guess it all comes down to market and pool of tenants.I disagree.

Also make sure to build on a property located in a desirable location with larger pop density and if holding for rentals, charge median rent for that market as lenders want to see a bigger pool of buyers/renters available to occupy/sell. 

Study the market.

Please advise.ThanksMel I'd recommend a local Independent Agency that has access to multiple markets including surplus lines

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

The local market has a lot of opportunities, especially if you’re looking into multifamily or creative financing.

I would look in the smaller markets in the outer band of RTP.

If the offer price is too good to be true you may be dealing with an inexperienced wholesaler who doesn't know the market. 

However right now it is VERY competitive in the tax lien market so it is going to be very hard to find something good.

And yes, there is a risk that your rates would go up or they can drop you - but unfortunately, many insurers in that are may already be planning to exit the market or raise rates on everyone to make up for loses.One thing to note about a claim like this, insurance will usually pay for repairs to the damage caused by the problem, but not fixing the actual pipe that broke.