Just want to clarify how you got there, to get to $12K you divided 1.2M by 100 lots (of which 60 has homes on them and producing rent, 40 lots are vacant). 

There is no way a PML will wait that long to get all their money back if your property on produced 250 a month.

A perfect example from my day today, lol, I showed two homes, 2-bed A-frames next to one another, one was producing 120k, the other under 70k (Both with views).

Sellers and agents often inflate prices based on potential income, but like you said, you want to base your investment on what's actually being produced right now.

And I want to rent out their home to produce cash flow with low interest rate, which they have. 

They should be using a net rental income analysis which would produce an income figure specific to each property based on your reporting on Sched E.

That company supports foreclose bidders they produce a document daily on all the sales with same info I mentioned above and color coded certain props with extra caution Red or Green for ready to go bid with confidence. although this created uber competition. 

However, most new investors make a much lower return and could be upside-down for a long time.Cashing out equity to invest presented much less risk when mortgage rates were 3% and properties were producing better returns.For a green investor, borrowing money so you can borrow money is high-risk.

I am happy to produce this new recording with Ashley Kehr and Tony Robinson on the Real Estate Rookie podcast!

However, RE syndications can produce good passive returns, but they come with risks.