for all the responses, they have been very constructive.

I tried to provide constructive feedback on why it was not worth continuing with RentRedi and all the sudden I couldn't type anymore (it was about 3-4 sentences I got cut off). 

It looks like you can use a 203k loan for new construction to reconstruct on an existing foundation.

But I purchased land in cash and leveraged it to build a new construction stick built home.

Have you considered Multi-family new construction?

The already-constructed home is one point on the base of the triangle, and the other plots comprise the rest.

@Rosmery ThenMy partner and I are in the same situation, just he has 20 years of construction and development experience.

At the current cost to build estimate $150/sqft, It appears a 1500-1700 sqft new construction will need to sale for around 399,9k to make a decent profit.

This is after all construction in Los Angeles, if you've never done it before add 50k.If you have $500,000 in cash I suggest you use it elsewhere, this years long headache is likely not worth the 1000's of man hours you will also have to put into it running your very own team of scientists.

I bet that essentially no one is starting new construction projects, which bodes extremely well for owners 2-4 years from now.- Prices for insurance policies will never go back down, but it is not unreasonable to expect costs to rise at a more predictable pace from here.