Utilizing empty lot space in this way helps to combat the increasing housing prices and limited supply many markets have been experiencing.

Rent growth is a function of supply, demand, and interest rates:- I'd ground any forecast by stating I expect national rents to rise on a pace more or less in line with inflation over any long time period. 2-3% per year.

Price is probably above market,  17k down finance 75k @ 3.8% 35 yr amortization.  3 year balloon.  

Construction is mainly CMU, Concrete, and Steel (at least for my projects), and there is a bottle neck of those resources as only few supply the area.

Balloon payments are very prevalent in commercial financing. 

Affordability is one of the biggest challenges in today’s housing market.I believe smaller, more dense units are part of the solution:1) Buyers can only afford smaller homes in today’s economy.2) Denser units maximize the land available, increasing housing supply to help offset demand and ultimately bring costs down overall.It’s not just about building more, it’s also about building smarter.What are your thoughts?

If you find someone that will let you supply the materials and work for labor only and sign a contract you supplied , you have hired an employee , a laborer , not a contractor .

I have a hard money lender at 10%, who will amortize at 30 years, with 5 year balloon so a potential loan of $200k is in the works.

Licensed with permits ~$4,000.Full replacement of all water supply lines and shutoffs from the interior water meter with PEX and an open basement.  1 kitchen 1 bath 1 laundry. 

.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.