I rent out one side and the other I stay in .  

Think ADU law changes in CA, and in Austin and other cities. 

Generally all months other than Sep-Nov are profitable. 

We have an existing mortgage (backed by these 2 lots and 2 others) and given the increase in appraised value there is no need to pay anything back to the lender when selling the lot.

There will be many situations where you can help a homeowner save their home -  however, in other situations they just want to sell quickly which provides a wholesale, fix/flip, buy/hold opportunity for you. 

Buy: $284,900Rehab: $115,000Holding: $16,500 Points: $3,413 Selling fee: $30,000Insurance hold: $2,000-$2,500 (maybe get back $1,000-$1500 if you close quick)Other title/escrow purchase: $2,500ARV: $500,000Profit: $46,587 (9.25% approx) I would do the deal, especially if you get that gap for rehab closed 3-4 months and tighten up the rehab costs too ($100,000)   

If you plan to grow your portfolio, consider setting up separate LLCs for each property to shield them from liabilities tied to others, though this adds complexity and costs. 

I recommend you do this annually to adjust for utility increases and other variables.

Or to just his since I have not had any communication with the other tenant that was on the lease?

@Bri Hall I am A managing partner at a company that facilitates full-scale flipping, lending, development and portfolio acquisition amongst other things.