I have a unique deal that the property owner is just wanting the builder to build him a home for "free" and he will sign over the land.

If you sold this property would you buy something in Arizona or would you continue to look for properties out of state? 

Are you able to add value and do a BRRRR?

I have often seen many people love the idea of building, but once they figure out the cost, those ideas change.For reference, here in Chicago, you can expect new builds to be between $200-$275/SF depending on MANY factors...that's just a very rough ballpark!

Here's a https://www.irs.gov/businesses/cost-segregation-audit-technique-guide-chapter-4-principal-elements-of-a-quality-cost-segregation-study-and-report to the IRS website noting specific items that are included in the cost segregation study report.

Quote from @Jyotin Gautam: Yes, a referral agreement can stipulate that the referral fee be paid at closing to ensure transparency and expediency.

@Jon Taylor, this is a great explanation.  

New windows, kitchen, basement bath and adding a storage room/pantry in the basement. 

I have regular drip but am buying Ks so they have both options. 

Just to confirm my understanding, you are living in a side by side duplex in Miami - you want to renovate the other side that you aren't living with a renovation loan?