Imagine if your an apartment owner and you perceive your asset is very very in demand.

I recently bought a property that was in a 'flood zone' and required Flood Insurance because of a loan.It made me think twice for a day or so, but after research (driving around/looking at aerial maps/talking to neighbors, I came to realize that there was almost zero 'real' risk.As you so astutely pointed out....this creates opportunity for investors that can do the research and can stomach a little perceived risk....

These are usually easier to fill because it's perceived as "better value" versus a 3 bed SFH that is renting for $1800-$2000. 

It may be close to one of the nicer areas but perceived and natural barriers make the two areas very different places to invest.

If you are unable to sell, the perm financing side can be similar; lower leverages and higher rates to accommodate the lender's perceived risk. 

Rents together are: 2945k/month for LTRMarket rents after minor reno: 3400 for LTRCan mid-term rent these as well: 4800 for MTR/STR hybridReno: 5-10kSeller wants 60k (his perceived equity) in 2years, nothing down and no monthly payment.Seller wants a chunk in 2 years b/c he wants to start a new venture.  5 years doesn't interest him and I am not thrilled with monthly payments b/c there will be much transition. 

I value family,faith,friends, and happy life experiences over trading a lot of that in time for big headaches with perceived higher cash flow that may or may not ever happen.

Realizing the scarcity (or at least my perceived scarcity) of ideal rental properties in the Jersey Shore/Central Jersey area, I thought, if I can not buy it - why not build it?

I'm just a little gun shy and afraid people aren't going to perceive me as someone who can help them because of my age.

You have to decide what is right for you, how you want others to perceive you, and what value you place on your word and actions.