I just bought my first rental property in Baltimore, MD, and I’m planning to rent it out by the room, including the basement.

I’m planning to purchase some land and build a small 12x12 cabin.

Expect to remodel kitchen and baths and put new floors down, paint, knock down a wall to open the floor plan. 

Finally, check with the Town to make sure there are no municipal liens, Make sure they're on Town sewer, check with the tax assessor to see how many bedrooms the tax office thinks there are, (important if you are flipping) buy ok to have more bedrooms if you are planning to buy and hold.  

Roads, water/sewer, city services, heck even just the planning for such is not a simplistic thing for all. 

During the partnership, you can jointly manage the property, increase its value, negotiate a flexible repayment plan with the seller that allows for larger payments after the property appreciates, ensure a written agreement that clearly specifies repayment terms and timeframes and refinance, and the sellers are able to 1031 at their leisure? 

do you plan to live in that property?

If you do a furnished LTR you will still have to worry about your furnishings and possibly consumables/linens if you plan on providing that sort of thing. 

You want to focus on markets that work with your plan and also where you have a personal connection with someone, even if you build that on the internet.

You need to minimize upfront expenses because 100% of your investment is at risk and lost if the lot is not buildable.My favorite strategy is to locate the property and tie it up for usually no more than $100 for a period of 8-12 months, analyze it myself and if I believe it to have a chance at being buildable I create a permitting plan and market the property to other investors/builders willing to take on the permitting risk.