I currently live in San Diego, Ca. but have been looking in the midwest, mainly Iowa, Indiana and Ohio, for properties. 

I created an LLC to collect rent and manage any expenses related to the property. 

The buyers and renters in that area, due to the low income, won't have any other options in terms of where they can live.  

Your expenses are not a reason to increase rent!

@Davis Barrow they didn't want to extend your rate lock because they wanted you to buy more expensive paper which is a bit unfortunate.

As far as being expensive; if the tax liability is not large enough then yes I agree, however, it depends on what is being sold too.

Hello Mike, It is nearly impossible to answer this question without taking a deep dive on the numbers of each but often times in expensive markets like Seattle the cost of construction is so high that it doesn't make sense to tear it down unless you can build something way bigger/nicer.

Just think about when you buy the house, could you and your family live here.

BUT, I am sick living in construction and would like to move to a new home and then finish fliping and sell or hold the two homes asap.

I live in the greater Washington DC area.