For example, if the property you are buying is a development property, like a small house with a large lot in a developing area, then a small negative cash flow could be okay if you can carry it.

The description states the property is "ready for rehab and development".

To meet this requirement, you must spend at least 750 hours per year actively participating in real estate activities, such as property management, development, or acquisitions, and these activities must constitute more than half of your total working hours for the year.

within 18 months a developer was doing a land assemblage and scooped up our parcel for 915k..

Quote from @Steve Lehman: @William VreelandAs a local Indy Investor and RE consultant I have been flowing the IHA development closely to see what kind of developments have been happening.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

Currently underwriting 35 SFHs being purchased as a portfolio by a PE Firm in order to push rents via ADU developments.

They are developing along the river so a lot of upside here (look up hazelwood green).

(Their offerings are now on a portal called “Swell”)One of the current offerings is a loan to a developer in Denver, offering 11% and maturing in Aug 2025.

It takes time to develop trust and credibility with potential investors, so don't wait until the last minute.