It really depends on the markets you are looking in, if you have the bandwidth to handle general contractors and their subs, and the amount of capital/liquid you have.

@Roger Garner the strategy will really depend on what level of involvement you want in the project.

This market is not always available in the MLS, so making it more difficult.A commercial lending is possible even with SFH, that will depend on your lender and the access to commercial programs, it will all depend on the situation.  

However, your rental income depends on your tenants remaining employed at similar wages.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Might have to look into this...I'm still over here getting a new card for the $200 off of $500 in the first 3 months and borrowing free money for a year lol I've always done cash-back and just make sure I use the card w/ the highest percentage for whatever I'm buying - I think Amazon is 6-7% back (depending how how fast you want it delivered), Wal-mart had a good one (5% back) there but I believe their partnership w/ CapitalOne just ended, Costco has a good one (4% back and I think 7% on gas). 

It depends on the area you're working in too.

depends on how many investors. 

Vijay,  It all depends on the location of the lot. 

Of course you could do both, depending what kind of capital you have.