I picked up the house for $225,000, put another $250k into remodeling the home and grading and improving the land.

It's commercial grade stuff that can be used for the exact purpose you're describing.

I suggest you give The Ultimate Guide to Grading Birmingham Alabama Neighborhoods a read.

This will make the last unit viable.Minimum drawing requirements include, but are not limited to:Bear the seal of a register design professional, in compliance with Sections 33791.01, 4703.12, and 4733.14 of the Ohio Revised code.Plans shall be drawn to scale and shall be sufficiently clear, comprehensive, detailed, and legible so that a determination can be made for conformance with all of the applicable provisions of the currently adopted codes.Mechanical plans: unit types and sizes, system layout, ventilation requirements, and provisions, and control system diagram.Electrical plans: riser diagram including provisions for grounding, panel board schedules, lighting plan(s) and circuiting, power plan(s) and circuiting, and special systems plans.Energy calculations.Provide a site plan showing to scale the size and location of new contruction and all existing structures on the site, including setback and side yard dimensions, all property and interior lot lines, distances from lot lines, the locations of the nearest streets, the established street grades, types and sizes of all utility lines and the elevations of the proposed finished grades; drawn in accordance with an accurate boundary line survey.Submit plumbing plans and details that locate and describe all fixtures, fixture schedules, and show compliance to handicapped accessibility.

Would love to know if these are realistic or not.Replace most of the plumbing ($2,000)Some electrical work (assuming about $6,000)New heater ($3,500)Rental grade bath ($3,500)Rental grade kitchen ($2,500)Multiple spots of sheetrock repair, skim coat, painting ($5,000)Flooring on 1st floor ($2,500)Carpet on steps and 2nd floor ($2,000)Add W+D hookup ($1,000)Appliances included in rehab cost (rental grade - $2,000)Total - $30,000Thanks everyone for viewing -- I'm just worried about the realism of the rehab and then the operating numbers.

As KC is on your short list of turnkey markets I figured I'd drop you a link to The Ultimate Guide to Grading Kansas City Missouri Neighborhoods.

David, my mention of the previous housing market crash being systemic was with reference to the standards by which lenders evaluated borrowers, the absence of risk for lenders due to government meddling and a whole host of other issues that are a bit beyond my pay grade. 

Josh you may find some value reading The Ultimate Guide to Grading Cleveland Neighborhoods.

Most of my clients buy strong suburban with better cap rates and low prices while still getting investment grade tenants.There can be some valuable land plays in both strong suburban and urban core areas.Ability to rebuild will depend on quality of the insurance company and policy and what they try to exclude.

Excavation and grading for the new parking lot and re-landscaping the existing lot (kind of like dig a hole fill it in).But boots on the ground at the site might see it differently.