Conservatively estimating new construction costs as $300/sq foot, the new duplexes could cost about $600,000 each to build (plus interest costs).

Was I too conservative?  

It’s also helpful to run conservative numbers and plan for vacancy or maintenance issues that might be harder to manage from afar. 

Are you a risk taker or conservative, are you organized or disorganized, are you emotionally intelligent or think more with your heart?

Much of the federal land out here in the west is used as range land for ranchers, oil and gas extraction, logging, mining, military training, recreation and conservation areas, etc. so it's not like it's not being used.

To support some of the challenges some residents may have that feel they conserve while others don't, you can also take the # of occupants and the square footage and come out w/a higher ratio for larger units w/more people.  

I have 25 properties in Memphis, and they cash flow $80-$100K per year, or $50K-$70K after CapEx.But that's with a conservative strategy, not the Section 8/BRRRR gurus path -- totally agree there are some scam artists out there.

I am wondering if i am being too conservative on some costs. 

Put your numbers in a BP calculator with some conservative rent growth and appreciation and see what happens in the next 10 years.

So, now, you only have 20% equity in the fund that is lending to the borrower that is 120% LTV, and you make money hand over fist.  30% is CONSERVATIVE.