Just depends on the mood of the appraiser.

Whether to build on your lots now or wait depends on a few things: construction costs, rental demand, and your financing options.

It’s not a bad idea just depends how much effort and $ you want to put in.

@Mike Levene cost to build per square foot is $200-$300 depending on finishes.So, you can start with that.

And it could take even longer than 6-12 months to find a replacement depending on the area.The other things to look at carefully are major Capex or maintenance expenses - you didn't mention whether this was a NNN lease.

Additionally, if he’s legally and financially tied to the property, it might limit his flexibility if he wants to make major life changes, like moving or starting his own investment ventures.Ultimately, the decision depends on how involved you want him to be in the financial side of the property and how much risk he’s willing to take. 

We have several different people lined up to clean ours depending on time of day and how much lead time we have.

Section-8 rentals are great because of that dependable income.

Of course, some will be a bit higher or lower, depending on upgrades, appliances, tile, crowns, flooring etc.  

And what happens after the 5, 7 or 10 years depends on the lender but typically it would be a balloon payment.