However, I received some feedback from one of my partners that the play here would be for an investor to subdivide or re plat the land for a multiple tenant situation.

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.

Figured there would be a few data points left out of the equation' that I would need to circle back with :) .There are additional units not rented at this time which could be rented to increase the income.

the majority of even my national users are looking to keep cash in reserve and as such are looking to landlords to finance that TIA as additional rent at a return premium and then that extra rent bakes off in whatever term is negotiated. 

I'm terrified enough of doing this out of state, so I am not interested in additional complexities with BRRRR.

Highest number of units without getting into commercial buidling codes at 4 units you have additional engineering requirements. 

For comparison, I just completed two new build duplexes in a flood sone in central Houston using a builder for these and my Hard + Soft costs were $149/ft. the only additional cost to factor in was the land.

In addition, a strong property management company will tackle all aspects of marketing, application, ensuring resident satisfaction, fair housing, handling late payment/evictions, renewals, etc. 

I don't receive a referral fee I'm just happy to share as it took me going through several CPAs to find the right one.

That leaves an additional market demand of 780 units.