Also, make sure there aren't additional restrictions on the property condition, compared to a conventional loan. 

Yes it’s common to have an additional guarantor who has a balance sheet added as a credit enhancement.

At the current price, adding the additional lots would make them about $30,000 per lot, depending on the price of the additional utilities that need to be added. 

Examining “risk” we see two different additional risks.  

Aside from that the biggest value add areas I see are as follows: Kitchens, Bathrooms, decks/patios (if added), additional rooms/bathsKitchens and bathrooms tend to be the go-to, but all of those can help you get the most bang for your buck. just keep in mind that if the area is already of high quality, then it may not be the best area to spend the money vs something that is blaringly in need of an update.

However, many investors get around this with a debt service loan.

I charge fees that create additional income.

I own my own house and I own some land out of state, so I have assets I want protected.I have quotes and will be purchasing an insurance policy that provides 1 million in landlord liability and I can also purchase an additional 1 million in an umbrella policy.My question is, is it even possible, or has anyone heard of a landlord getting sued and losing over $2 million on a simple duplex?

That’s 850K worth of debt.

Looking for ways to create more passive income for myself.I guess an additional question is how profitable should I expect a short term rental to be in that area?