If lease rates are less than you think and costs go up to renovate then poof your profit is gone.What about environmental?

But I assume you'll be doing extensive due diligence before you purchase, anyway, so maybe the tenant will  be satisfied if you just share your inspection reports and the building plans, environmental reports, surveys, or whatever else you'll be undertaking anyway. 

You need to be conscious of that and make sure the market is a strong rental market.

You might need environmental studies, walk-throughs might take an army of people, management of the units requires a larger effort, etc.On the other hand, building a portfolio of 100 properties is much easier to do if you go the multi-family route.

As part of the land purchase, I feel it would be best to present all of the revenue generation options upfront for each property before starting geological, environmental, and civil surveys.I would appreciate any insight on creating value post-purchase, identifying suitable revenue options, forecasting, estimation of potential returns during development, key team members to add (engineers, surveyors, etc.), and deal structuring (I am raising funds for the purchase so insight into owner-financing options, etc. would be great).Disclaimer: I realize some of this information can only be provided after thorough examination of the land and welcome any suggestions on experienced, reputable, and successful professionals in these spaces.Thanks for replying,Ryan

How do you get a guest estimation for an initial lot count, do you figure it of a 10% 15% or 20% land loss to environmental, road ingress/egress, then divide that by the base zone (the per lot minimum) / total available land ?

As for due diligence, the main thing is to make sure you don't have any potential environmental problems.

Do you have enough to cover down payment (probably 35%)...and closing costs (2-3 points plus underwriting fees, processing fees, escrows, environmental study and settlement costs) and 3 months reserves?

If you want to buy a fixer upper in downtown Frederick, just be conscious of where the borders of the historic district as it can be a pain dealing with exterior renovations inside the historic district.

I contacted a few not for profits and they said if they desire housing for their clients they just purchase buildings themselves they dont rent them from investors.I have looked into a phase one environmental study as well.