Yes they are buying old homes to tear down to build there now.

Personally, If I could pull out a HELOC, I would use it to fix and flip which will typically make sense as you shouldnt be keeping the money out for that long and you can recycle it or pay it back and build off the capital that you got from. the flip.

I'm building some currently (so obviously I think that works). 

The first apartments I rented as the owner, were previously rented by the former owner at $150 month including utilities. 

But make sure to build a strong core 4 if you invest out of state (deal finder, your property manager, your lender, and your contractor).5.

The drawback is you need to build trust and relationships upfront.Both have their place, but private money tends to offer more flexibility, while hard money is more structured and accessible if you lack personal connections.

We rent apartments, so we only have one door/unit with a doorknob and dead bolt.   

This is the reason homes are so much cheaper than cost to build.

@Heather Bailey while I live in my duplex, I have a standard Hazard insurance policy and I also carry an additional 500k umbrella policy (optional); both policies cover the entire building, but there's no separating it. 

The seller has the two lots legally separated, but due to deed restriction imposed by the subdivision development, found that building a house on the “tennis court” lot was not allowable.