You are using less than desirable amounts for CapEx, R&M, and PM.  

Hello,After looking at single family houses to buy in Northfield, MN, it turns out with the same money I can build a new house to our desire.

I can also redo the kitchen and add a bathroom pretty easily (it’s currently 3 bed, 1 bath) and both bathrooms and updated kitchens are pretty desirable in my area.

These are the people most likely to use sub 800sf and would find a short-term lease desirable.

It's just common sense, but sometimes you just need to read it.http://www.littlethingsmatter.com/blog/2010/02/17/...https://sajigroup.com/law-of-magnetism/I'll leave you with these words from John Maxwell (I believe): What determines if you attract people with your desired qualities is not what you want, it is who you are, that is how the Law of Magnetism works.

So if you strike a deal, get it inspected.Probably the most important things to look for, that will not be found on an inspection, are things that make the property less desirable. 

Newport is a great town, but a very unique market.The desirable parts of Newport can be expensive, and are generally above the max VA loan amount.

Your idea leaves a lot to be desired.

It sounds like the turn around time will be a lot quicker on the single family.Also, how desirable are duplexes in your area?

I would do it depending on how desirable the area is.