At the submitted square footage you provided, that $2M seems wildly out of whack.

Red Snapper, grouper, barracuda for USD $4 per pound. 

Yup, this is exactly the reason that I wouldnt allow delegated correspondent - it's too easy to get greedy and gloss over red flags when you get paid to package and sell risk to your partners instead of bearing it yourself.

I was told by some agent to insurance more than the purchased price, while others say that it is enough to cover only roughly $75 * square footage.

Per square foot, does one or the other have a higher likelihood of returning a higher return?  

.)- All in Cost = Cost to build * Square foot  - Sales Price = All in Cost + (All in cost * 20%)* Covers contractor and soft cost on either fee based or cost+- Profit = (Sales price - (Sales Price * 7%))* - All in Cost   accounts for agent fees and closing cost- Initial List Price = Sales price + 10%      A buffer to test market absorption- Break Even being All in cost, point where everyone is paid except me. - List price is to test the market absorption at "x" price. 250k land + build.

Multi-family properties many times provide a better return per square foot than single family, which would be to your advantage as well.As long as you're mindful of the reinvestment requirements and purchase at least as much as you sold and use all of the proceeds, you shouldn't have any issues with this strategy.

Once that is squared away you'll have more experience to explore investment property. 

We’re property managers based in Redding, CA, and the laws here favor the tenants, making situations like this even trickier.

I purchased a duplex in Saginaw from them in late 2023 and should have seen the red flags from the start.An early red flag was when my contact Katee was doing a video walk-through of the property that I ultimately purchased.