I've got a property under contractPurchase price $78K out the door (I have cash to close) Intent: build on the property which already has a functioning well, septic, and needs PGE installed Total buildout on the property utilities: $128K including the original land purchase price.

If you choose not to rebuild/replace your settlement would usually be for actual cash value.It's unlikely you can get a settlement for above the coverage amount you paid for.

Is the property already zoned multi-family?

Just make sure you draft an operating agreement that outlines responsibilities and expectations.For financing, and if you choose to go through an LLC, DSCR loans will be a great tool.

Helps you stand apart from similar 4 bedroom homes and if you choose to pursue a rent by the room strategy in can create additional cash flow.

If you decide to exit real estate entirely, just make sure whatever investment path you choose aligns with your goals and risk tolerance.

I recommend selecting an investment city based on the following criteria.Key Criteria for Choosing an Investment CityRents Must Outpace InflationFinancial freedom depends on rental income growing faster than inflation.

We do want to settle in a little bit here while continuing to do our homework, but hope to get into something in the next 6-12 months.With the way interest rates are looking now and what little I see on public listings, I think a smaller multi-family that needs a little rehab would be the best bet. 

I would encourage you to read this beginners guide from BiggerPockets, it's a good bit of information so pick and choose what you want to read or read it all.

Quote from @David B Graham: Investment Info:Small multi-family (2-4 units) buy & hold investment.