I have flipped new homes and townhomes but phased out raising a family and now am focused on utilizing my skills which are building, selling, expanding a circle of influence to focus my effort on the above.

If we were not able to raise the price of our homes by 20% or more we would had to stop.. my LORI plan started at 600k sold two of them and made our normal 100k net.. last loris I sold 36 months later went for 850 to 900k and we made right at 250k NET on those ones.. so it was very specific to plans that CASH buying empty nesters wanted ..

I'd say consider split testing the SFR and LTR approach. 

One of my toughest sales was a raised home in a flood zone.

Looking back and seeing that they came back so quickly we probably could have stayed at that number, but I did raise the new offer to $152,000 net to HUD. 

So actual benefit is hard to nail down until it's actually tested/required to provide protection in the event of a lawsuit. 

Small-Scale Testing:If you're uncertain about diving into a larger project, you might want to test them with a smaller loan to see how they handle the process.

And it doesn't seem to spoil the charm for couples on a romantic getaway.We've been able to raise the nightly rate 2-3x with better occupancy. 

Requiring raising preferred, probably impairment to early investors may happen.

@Richard Schubert If the house next door is a solid enough deal you could always raise the money from people in your network to tie it up.