Next step is to really scale it more to keep growing.

@Gabriel EhrlichTypical fix and flip model has scaling challenges. 

It does kind of stink if you are trying to buy them both at the same time but still being able to scale the quickly is awesome even if you have to wait the year in between.

The developers need both economies of scale and top-end rents to make the numbers work.Post some more details, location and your financial breakdown, and the community will help you walk through whether this is actually a viable plan. 

@Amy Ranae Your cost to build is going to be too much to make it work as a hold property right now, unless you get very large in scale. 

The team is needed once you try to scale up.

Profits from real estate investments, at the scale you would be starting at, are taxed at the highest marginal tax rate. 

I just want to scale my portfolio ED.

I'd give him the legal notice, and return his deposit (yes, it will be painful, but if you don't have proof, IMO it's a lost cause, not worth the hassle/stress) , and offer him a sliding scale, $400 if he moves out next week, $300 if he moves out in 2 weeks, $200 if 3 weeks, contingent that he cleans up the place too.  

Having your hands tied with not being able to self-managing someone cost effectively might tip the scale to #3.#1 - if what you wrote was true, you may be able to utilize much of the existing duct work.