I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

Cost approach A straightforward method that adds the cost of the land to the cost of building construction.

Upon closing my single family construction my home had about 25% in equity on day one(in 2018 in Tennessee). 

Housing has always been super affordable there, and new construction has increased in recent years.

There is new construction in the area.Thanks,Todd

Quote from @Dennis Bragg: Alan, I’ve got to say, taking on a major construction project like this in Ardmore is a bold move, and I admire the ambition.

LTV dropped to 50%. 30 yr fixed @ 4.3% LLC (2)• Investment condo - new construction high end purchased in 2019.

If you don't have construction experience, I wouldn't start flipping.

I was broke enough that I couldn't afford rent at my apartment, but fortunately my landlord didn't notice, thanks in part or in whole due to some substance abuse issues.Anyways, when visiting my mom in the neighborhood where I grew up, I had noticed this construction van at a house on our street.

The current costs of construction are so high that you can just find more bang for your buck buying as opposed to building.