But is there a scenario where you strictly entitle lots or maybe take reasonable size parcels that you split and turn into 8 to 10 lot subdivisions to where the profit makes sense? 

I purchased the unit for 250K and I put about 25K into the place.The rents in the area for these type of units go for around 3K, maybe a bit more, leaving me about $400+ a month in profit after the mortgage and HOA.

BP, I’m looking at an 8-unit deal in the Northeast that was historically a non-profit co-op with tenants already in place at substantially below market rents.

Beware of trusting people with a profit motive.

Nice profit.

Sell home on MLSMy logic is that that price at which I will construct the home will be considerably less than the price at which I will sell, thereby giving me nice profit margin .

With a favorable market and minimal improvements needed, we saw a profitable opportunity to capitalize on the high demand in the area.

Paying top dollar in a hot market may not be as profitable as a great deal in a solid market. 

When we underwrite our F&F's, the guidelines are in place to make sure you have a healthy profit margin so if we see anything glaring that should be re-considered we can walk through that in order to make sure everything make sense before proceeding. 

By leveraging market knowledge and strategic partnerships, we turned a modest investment into a profitable transaction.