Red flags yet?

Get out of your comfort zone.

I'm not sure where your market is but I could help look at land costs. we are trying to educate building to rent or building investment properties as a new strategy to just buying the garbage new builds around the country. this fits on lots as small as 3500 square feet. you'd have to check local zoning but if I had what you had that's what I'd do or at least look into it. 

Many just ignore the zoning rule though.

The setback requirements to build in my county require 80' minimum wide street frontage per this neighborhood zoning.

Those that choose and can rebuild, will most likely not build back to the extent or scale due to feasibility or costs or unanticipated new zoning, infrastructure, insurance and legal variables.

Land priced right, zoned correctly, market analysis great and potential competition low.  

To guarantee compliance, also acquaint yourself with zoning rules and municipal restrictions.2.

As a matter of fact, the red 4 unit next door is always on Zillow trying to be sold.

Get out of your comfort zone.