That is just not realistic in this current market.So in my opinion it's important to expose yourself to a large number of deals, so you can develop an intuitive sense of what's reasonable and what's not (and quickly discard the ones that aren't).And it's true that there is no way to 100% protect from fraud (and not just in passive real estate investments but even in public stocks etc.).

We are still doing a ton of fix and flip loans there and the numbers make sense for the banks.

If so, youll want to do the calculations if it makes sense to immediately refinance or wait the year until the penalty goes away. 

If so, it would make sense to figure that out first before deciding on a specific area.

For me personally, I am hesitant to sell unless it really makes sense.

I sense your frustration.

There's no wrong way, as long as it makes sense for YOU.

If that makes sense. if no other builders offered on it and your the only one..

There’s almost always a rate at which it just doesn’t make sense.

If you're confident you can find better cash-flowing deals or scale your portfolio with leverage, it could make more sense to reinvest rather than pay off the loan.