Non UL electrical, plumbing &HVAC materials.

All businesses can hit speed bumps during any growth period. 

We I purchasedthe property, the previous owners updated the plumbing, adding HAVCand updated the electrical.

A new build needs to perform better than that to make it worth your time, all the risks and capital concentration.thanks for the advice everyone and would be happy to connect with you: @Bryant Brislin @Dave Wells @Leilah Davis @Joshua Stewart I have been building 15 to 20 spec houses a year now for 7 or 8 years.. average NET NET NET profit is between 10 to 15% of gross selling price. and if we hit 20% thats a big win.. my price points have been starter or rental houses in FLA that sold in tehe 250s and those are simply not worth doing..

If you make base hits for 10 years you will look back on a portfolio that has a lot of runs.Best of luck.

There is no possible way, you can rationally estimate (guess), which one out of how ever many others may say it takes, you hit on. 

I recently came across 1 acre asking for 314k in a very good residential and growing location, so the current owner has added 4 manufactured homes with 4 electrical meters, 4 septic tanks and only 1 water meter for all 4 homes, the homes are sitting on partial slab and partial pier & beam, he also added 2 storage sheds approx. 380sqft with the intention to make them ADUs they are still only the shell so I would have to get those ready to live in, so currently the 4 manufactured homes are being rented and bringing in 2800k a month, 3 of the homes are needing some TLC which could increment rents and possibly get me at 3600k a month, also being a 1ac lot this still leaves about 12,000sqft of raw land where you could build etc.So that is on the good side now the things I did not like so much, the lay out is poorly executed to where it makes it looked crammed up and not professional but it could be fixed.Another is that in reality there is only 4 livable units so that qualifies under a conventional loan but since they're are 6 units on the property the banks are wanting to take it as a commercial so we would have to move out the 2 storage sheds out in order to close as conventional.Another concern, technically you are only allowed to have one manufactured house or single wide in your property according to what I know but I know it could change according to zoning which I will investigate, so my question is has all this been accounted for and if so how can I verify it so it wont leave me in a bind further down the road, I currently asked my agent for the appraisal of the property to see if that might verify.Any recommendations?

Even if I take the 15% tax hit I would make $32,000/ year on the remaining $400,000.    

When Helene/Milton hit we had local displacements and I suspended any rising rates (rising naturally due to spike to demand). 

Next up is a huge financial hit: closing costs.