Actually considering if there is a play to build or buy an app.

If you can buy a house with a small cash flow and there is room to build a duplex on the back of the lot, then you get free dirt. 

Year 1 cash-on-cash returns are a vital part of the equation. 

If someone has a deal that they are up over $1m (including the small cash flow) and I was starting out, I would be all over the financials and the plan. 

If you are in the Wilkes-Barre/Scranton market, you used to be able to get duplexes for $50k to $100k and make it cash flow quickly.

BTW, I am not disputing you, just playing devil's advocate and wanting someone to challenge my thinking. 

However, I'm in the middle of a cash-out refinance of an investment property I already own.

Quote from @Jason Burkart: Quote from @Linda Weygant: A few issues come into play on this.1. 

On my new builds we hit the double cash on cash in certain markets sometimes its only 50%.

New construction in a saturated market isn’t always the best play if you’re looking for steady returns.A place like Rochester has way better fundamentals—lower buy-in, strong rent-to-price ratios, and stable demand from universities, hospitals, and major employers.