It affects the marketability/value of the property. 

Are you currently investing in your hometown or are you looking at out of state markets?

I have been digging into off market deals and it has been promising.

-why not pick a market closer to home? 

In fact, just finished one that I have yet to put on the market. 

It's one of the hottest markets in the US right now with so much population growth, job growth, and companies moving/developing here (26B Intel headquarters being built here, 68K+ enrollment in Ohio State University, Amazon, FB, Google, Honda, Nationwide, Anduril, etc.).

We did this because initially we were just going to build/sell, but I would rather hold on to it.

can the lot be sold on the open market? 

This creates an initial negative equity position that consumes the initial cash flow, sometimes for many years.

No issues and tenants are renewing.That indicates tenants were paying below market rates.If the market rate for a 2-bed/1-bath apartment is $1,000 without utilities included, then he should adjust his rate to $1,100 because it includes $100 in utility cost.