A new build needs to perform better than that to make it worth your time, all the risks and capital concentration.thanks for the advice everyone and would be happy to connect with you: @Bryant Brislin @Dave Wells @Leilah Davis @Joshua Stewart I have been building 15 to 20 spec houses a year now for 7 or 8 years..Just curious, generally from start to finish, from closing on buying the land to collecting a check after building the house and after escrow, how long is the process taking you? 

If this was the case, you risk putting yourself and the property at risk.

And as I explained earlier, your investment is protected by real property, so your risk is extremely low. 

Buy a lot, build a rental propert, to be rented out 2026 for approximate annual income 150k.I understand I can borrow for 1 and (2 or 3), but that would put me under risk i don't want to take.  

If I have highly leveraged properties, as long as they cash flow, the bank takes the risk with me. 

Or the developer can close on the land at risk but they have a lot of capital when that's the case.  

Reward: Assess whether the uncertainty surrounding the current occupants, title clarity, and liens aligns with your risk tolerance.

Is it worth it to go through the proper process with the city and run the risk of a huge expense to make this a 3rd unit? 

Seems like a high-risk, low reward situation though.

With rapid appreciation and cash-out refinancing, you will only need a small portion of that amount.Low risk of natural disasters.