@Kyler Lee:Pros:A-class property should command top rentsVery low CapEx and maintenance, at least in the beginning.Building right can lower operating costs.Cons:Nearly impossible to make the numbers work due to the high cost of land and laborTons of red tape with P&ZNeed to work with a very experienced GC, which eats profitsUtility hook-ups can make the costs prohibitive for a rentalDifficulty getting financing if you (or a partner) doesn't have direct, relevant experienceNo cash flow for the entire construction period requires larger up-front reservesThere's a reason only really see SFH or large MFR being built in most places.

Just a warning eat before you go the food is kinda terrible.It's so strange but many investors I've come across in NY dont follow BP some dont even know it exists.  

If I flip it, I'm worried that capital gains taxes will eat up to much of the profit. 

They are nice people but they have to eat.

Is this a single family home that could be used even just in part as a store, service, eating place, office etc..?

@Kevin Sobilo I agree and Ive had to eat my cost up in the past when I had my trenching business.

The reason for that is, my repairs typically are done in a couple of months, and I don't want to eat up my equity by holding hard money that long. 

In this case, they technically might be able to force you to make their rent include electric for the time the furnace was on their line.If they're a new tenant, and you're in one of those states, I'd probably just eat the electric bill for the first month or whatever while it gets fixed.

They basically eat up all your cash flow.

This may be something you need to eat.