This also happened a lot in new tracts, where we would just walk down the street and note which lots had which models, but we might miss certain options on a model, like a 4th bedroom option upstairs or a 3rd bathroom or powder room, or something at the rear of the property we can see from the street, etc. 

Just because zoning allows 8 Units/Acre, a 5 acre tract doesnt necessarily mean you can get 40 Units.

I didn't want to get into that.I did submit an offer on a tract of land that is 1/2 mile away. 

This particular tract was purchased 12 years ago as a buy and hold investment.

Cities rezone neighborhoods or tracts of land to meet their long term planning and land use goals.

@Chris Mason It would be really nice if Freddie Mac would go back to their old rules where there was no income limit for homes located in low/mod census tracts. 

I have a contact who could do property management in the area who tells me that massive amounts of tract homes are getting entitled there, so I am a little concerned about an impending flood of supply.

Income restrictions apply in certain census tracts.

If they aren't FTHB, or otherwise can't swing FNMA HomeReady (income limits by census tract of the property, for example), and can't do 5% down conventional, and time is critical (because your HML rate is 15%, you need to recoup capital for the next deal, etc), find a different buyer.You aren't pressuring your buyer to take a crappy loan, for the record.

In just the past month, I've met a handful of clients who match that exact demographic: young professionals who are ready to get their piece of the American Dream, but see how much a piece of crap 1950's tract-home is going to cost them in the Bay Area, and think to themselves "you've got to be kidding."