The value the owner provides is the buyer's/contractor's cost of money.You could seller finance to a contractor and subordinate your loan to a construction lender, hope you have faith in the contractor taking a back seat to a larger first mortgage, or you have assets to cover yourself.Also, as to lots in a higher end subdivision or area, the neighbors are prime prospects, some people are funny about what gets built next door or who moves in, so if they have the money and don't want to move, they might just buy it.I'm considering doing that with one of my properties, just buy the place next door, it's why I haven't rehabbed it yet.Don't forget word of mouth works pretty well in luxury sales. 

There were more jobs, cost of living was lower, taxes were lower, and the people were happier.

You can read the recent post on this and actually hear all of this from the attorney's own mouth as I dissect and forensically audit his contracts in the webinar on my Virtual Real Estate Investor Academy website for free. 

So far I have never had to advertise my rental when complete because of the letter and word of mouth.

I would much prefer seeing people flip projects or deals going on than someone's cat with some insane quote coming out of it mouth( thanks mom, no seriously it was a really funny quote and extremely cute cat) .

I'm putting my money where my mouth is and buying houses for long term rentals that will cash flow and locking in 30yr fixed mtg's.  

Most buyer's agents only get 3% not 3.5% so asking her to take 2% when you offer to pay the buyer's agent 3.5% will probably come across as an insult, plus your agent is the one who's going to be spending all the money to market your property.When you approach your agent with this proposal just ask her "what can she do to help out with lowering the commissions on the resale," then shut your mouth and wait for her to answer.

I would be happier paying more for the home if its going to cost me less upfront.

Putting your money where your mouth is so to say.  

I know my wife isn't happy about me not getting my RE license with her, but since my daughter is going to do it with her, she is a little happier, but I think she still wants me to go too.