Buy in a market not too far away, 30 to 1 hr from a decent city center where values are reasonable and a city push out with help your rent and appreciation. 

If you want something more passive or hands off then there are turnkey options as well where you can get cash flow but will be buying more at market value.

We are buying two houses right next to each other.

I’ve had several deals like this on the buy side and sell side where the “gremlins” came out and started whispering against my intuitions.  

Jeffrey:I'm connected to a large group in Indy that focuses on buy & hold SF and apartment (commercial) residential real estate. 

I'd save yourself from the headaches and just buy it with a DSCR loan.

I buy and sell real estate notes.

Please see the rough numbers below :Tear down house price 350k,Construction cost 165 sqft * 2 build=627k too much for the land unless your exit is 3 million. don't reinvent the wheel. no single family home builder is paying 300k for land. that's miami florida prices where I live. we buy land 50k and under in Columbus Ohio. keep land at less than 10% of after built value.

Then refinance at 80% and buy a few more and do it again. 

I can't buy gas with a percentage.