There are markets that have built in "gotchas" like the rising cost of insurance in coastal FL, regulations in much of the west coast states and property taxes in Texas; however, the deal itself is the most critical factor.

With insurance rates going up, best to find areas with the lowest operating cost.

Thank you for your time and consideration. 

There is no consideration for risks, areas, quality of the house, renovation, or management.  

Many thanks for your consideration and input!

HELOCs let you access equity as needed, keeping costs low unless you use the funds.Key considerations: If you plan to scale quickly, the HELOC might provide the liquidity you need for faster moves.

If this is financing for a stabilized property rate carries more importance but rate combined with origination fees, pre-payment penalty and term in which you intend on keeping the loan in place are all considerations which together should help in deciding the best financing option.

And preparing a building site and installing a driveway are further considerations if I even decide to build something there.

The court forms do not track this type of eviction so based on your sophistication you may spend a considerable amount of time and if you are off in the slightest the court will withhold judgment. 

The two existing LTR units (on my family’s property) were built 5–8 years ago at a cost of about $80,000 per unit, so I’m estimating a 20% increase in costs for the new builds.My plan is to use the equity in the land as the down payment for the construction loan, which I expect will make closing costs the primary upfront expense.