If you could separate the lots so the old home was one one, and then juice it to match two new ones on either side then you've go next to 0 in lot cost on two new constructions.If you do decide to develop part - do not at any cost, sell the house before all entitlements are in place. 

That being said the process of trying to convert it zoning wise made the juice not worth the squeeze.

I'll provide some entertaining reading of how I got started: I lost my house in the recession in FL, I was in michigan thinking I would rent for the rest of my life and I was fine with that, mom "pressured" me to use her $50K loan (part of her retirement) to buy a house (no intentions to invest, just a house to live in) initially I didn't want to risk her money but after some thought I accepted her offer in 2012, after months of many losing bids of foreclosures I finally won not 1 but 2 at the same time, so my realtor brother said not to let go the other one so he lent me $20K, after the rehabbing, contractors, being scammed sometimes and feeling like the life was sucked out of me (and by miracle didn't get fired from my job) I finished both so I had to put one for rent, swore never to do this again but 2 years later was looking thru zillow and homepath and the adrenaline juices started flowing again, took out a home equity loan and bought 2 more, repeat same pattern, life sucked out of me, again I don't know how I didn't get fired, but afterwards I was just tired and not disillusioned with real estate like the first time; and then bought the last one where I live 2 years ago, sorry to make it long lol.Thank you @Jessie Niu, I'm trying to see which of the methods you mentioned will take me the furthest.

All they're doing is passing along the same set of "darts"...kind of like one of those fruit cakes you see at Christmas.PM me. 

When I die, the fruits of my labors will still benefit future generations of my family.Another advantage that hasn't been mentioned is the use of retirement accounts.

LOL.. well none of them ever redeemed and I lost interest and frankly forgot about em and lost my 10k.. so that was a 10k self education into understanding that there is much more to this type of investing than meets the eye and its to detailed for someone like me.Now I have done a bunch of tax sale investing and done well at that... but those are auctions you bid you buy you get a deedhowever now with bid 4 assets doing it on line you get all these folks who big this stuff up to past retail so that's no longer very fruitful or fun anymore  :)  at least were I troll for deals.And in my state I think we at the only state in the union that does not do tax sale or tax lien.. and very few properties go.. and if they do go to tax sale they just escheat to the state.. who then sometime in the future sells them off as surplus.and I have seen owners who lost them petition the county supervisors and get the property back.. which I know is very unique.

In my experience, driving for dollars/walking target neighborhoods has been very fruitful. 

For a long term play, if you plant a few plant guilds that sustain one another (a la 3 sisters), especially if they're something nice like fruit trees or flowering trees, I feel like you would attract better tenants/buyers and at the very least set your self apart from your competition since all properties being equal of course I would chose to move into the property that yields free food. 

I remember the best years ago when my father was teaching me all about rental real estate in Australia.It was not unusual to had several European generations living in a home & they often collected a substantial amount of urine to boost the soils deficient in N, K & P under the fruit trees we had on the properties.

They worked tirelessly and never stopped to enjoy the fruits of their labor.