Building a 1500 sq. ft. house would cost $150,000.00  If the developer wants 12%ROI based on ARV he will need $36K in profit, there's also some soft costs, let's call that 12% as well.  

One good thing about this that I don't really see mentioned is that when the applicant pays (instead of the landlord) it registers as a soft hit to their credit, rather than a hard hit, so it won't affect their credit rating.

Pay all the soft costs (about 20k more for total architect/zoning attorney/surveyor and acquire the plans and sell the lot from there?

(not the cheap MDF ones, but the ones that are made from solid plywood boxes and soft close drawers).4. 

A former adviser to the Bass family of Fort Worth, Texas, Barrack founded Colony in 1991 and began investing in property in the wake of the savings-and-loan crisis.

Any signs of softness?

I'm sure some of you have came across the software Freedom Soft.

Soft costs including designand engineering plans ($1 sqft), plot plan($600 deal from connection ) and soil test for septic ($500 to plumber for excavation and 200 for city).

. :)If you've got the time, do a conventional 'soft money' cash out refinance on one or both of the others.If you don't have that time, get hard money on one or both of the others & refinance the hard money after.

The rest is ensuring that there are not other dangerous conditions in the home, such as soft floors.