We own the property and would not be purchasing a new piece of land.Property tax would come on at around 15k/yr or 1250/moI got a quote on insurance that would put it at 8,500/yr or 710/moThe number I'm having a really hard time trying to nail down is the price per foot to build. 

If you lease option, you should sort of model it after the car market, as they have the lease / option thing nailed.

It also seems your expenses are low by about 20%, quick and dirty rule you should be using 50% of revenue as expenses until you can nail down the actuals for deeper analysis. 

Since I purchased (2014), they imposed a cap on rentals. 

Nail Hit On Head!

I think you have to tell your tenants, “This is a very, very durable floor that has a 15 year warranty covering normal domestic activity and most liquid spills without damage, but drag a metal or a heavy piece of furniture or a chair with a nail or a piece of gravel stuck in the foot and it will scratch and that is preventable, not normal wear and tear.

Other than using cash app that puts a cap on how much you can send/receive within a time frame.

If that doesn’t yield anything, increase it to 6 months and just be conservative with your numbers. if you absolutely nail down that a property is worth $250,000, I would plan on selling it for max $245,000 because buyers will always talk you down.

That being said, I generally over-rehab and replace anything remotely questionable so I don't have to deal with it later and empty out EVERYTHING not nailed down, which includes the attics and basements, which has worked well for us. 

They call it fraud when you screw it up, and can enforce penalties, interest and even jail time - that's how they got Al Capone.