@Kenneth Rose the local “boots on the ground” will make or break your investment if it’s out of state.My first rental is OOS, and if the realtor that sold it to me (that also does some property management too) wasn’t an honest, Hard working person, I would have had a disaster on my hands and been lucky to sell for what I paid for.Not trying to dissuade you, as I did it, got lucky, and it’s worked out, but it adds risk, when as a new investor, it’s hardest to identify and mitigate risks.

It would need to be a ground up development however and I personally haven't done that before.

Been there, done that.....Now you can keep the existing ground level garage and install new structure above to carry the new load.

The older hardboard is still holding up/performing in drier climates when installation was good, eg no nails overdriven and z flashing used where needed, and it was kept caulked and painted, including the seams, window trim and paint on the lower exposed edges and it was installed a distance from the ground.

@Scott Bell Op - are you talking about scraping the old off and building new, or developing raw ground? 

I've had a cabin burn to the ground, so speaking from experience, it does matter who your insurer is, as well as your agent.

Am I crazy going in without the phase II? 

They are ugly and not likely to be put under ground without huge costs3.

Some you can get from books but no substitute for local boots on the ground advice that you trust. 

Afaik, rtp will not cashflow unless you increase your equity in the deal.Lastly, cannot stress enough on having a good team on the ground, one you can trust.