It's in a newly developing area with houses being built and other lots selling nearby.

@Frankie Paterno In most places you will likely find that your $1.2MM will go much further with existing built as opposed to developing.

Depending on the number of jobs and number of new development going on in the area it may just be simple supply and demand.

I've asked my clients a similar question and have developed tools for them to minimize this, but I find there are a few different types of clients.Manager managed - these folks have no issues as they simply upload their year end statement from their property manager, their 1098 mortgage statement and any other one-off expenses they may have paid for outside of the management company. 

If the developer can do better than 35%, then the deal becomes even more profitable for them.

When you work at a large corporation (national or global) you learn a lot in your role, but also by osmosis, just by observing other people and seeing how projects are developed, business is done etc.

To meet this requirement, you must spend at least 750 hours per year actively participating in real estate activities, such as property management, development, or acquisitions, and these activities must constitute more than half of your total working hours for the year.

we are build to rent developers in columbus ohio. we a direct builders for investors around the country. we don't sell on the open market we build from scratch and it's very relationship based. it's very different but I would consider us turnkey. we build at 75% of market value with land and investors can refinance out and do it again and gain approx 100k equity each time. ours is an infill triplex in columbus ohio. that's just my 2 cents. turnkey is deal by deal 

Single family or multifamily, flips or rentals, new developments in light areas or infill lots?

Over time, we have developed systems to handle these situations as effectively as possible.