Leave the owners alone, when and if they are ready to sell, they will, and there will be plenty of lots to choose from on the MLS.I have no statistics to back this up, but in my casual observation after our fire is about 1/3 of the owners rebuilt their homes (some built similar, some duplicated exactly--big mistake, and some built better/nicer/larger homes). 

Without accounting for management fees (I have not yet decided if I will try to self manage), and with planning to raise rents to typical market of $825 for each of the smaller units, and $1200 for the larger unit, does this seem like a worthy first investment? 

Quote from @Chris Seveney: Quote from @Devin James: In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.While rates are historically average, I don’t see them dropping significantly.

That is for larger companies or for disgruntled clients or relatives looking to help.Per diems only work in theory.

There is very little profit when undertaking $45K renovation projects therefore most qualified contractors will pass on those bid opportunities. 

One last thought is your likely going to be getting a larger depreciation write off with new acquisitions.

Level of current renovation - quite a few properties in Peniche are left to be renovated providing the opportunity that there will be decent area specific capital appreciation. 

We purchased a much larger duplex and went from a 2/2 to a 4/2.

Worth knowing, that it is less about adding “handcuffs” and more about offering a different option for owners who aren’t ready to sell but need capital - money for renovations, maintenance, or any other need.

@Monty Alston It has some impact but no lenders will give you credit for having experience building a home unless you have built or renovated a home in the last 3-5 years.