In many locations, including some of the other hot-housing market cities, appreciation has made homes unaffordable to those who don’t own a house they can sell for the funds needed to make a move.

You may even be licensed to sell to earn extra money.

They are all renting for 1100 and we sell them for 75K.

If you are looking to have a solid investment property that is paid with OPM and makes a little bit of cashflow that you can sell later in life for a major windfall - probably not that crazy.

If you’re going this route, make sure the PM company is under the same roof, the rehabs are quality and they aren’t selling to you above market (appraisal price).

She is looking to move to Florida, and can't sell this home due to:1) She wants top dollar2) The home sits next to a transfer pump station (eyesore)3) It sits on a main road (traffic, noise)4) The community pool is behind the home and visible from the deckThe home is in immaculate condition.

Purchase a property at least as much as you sell. 

Or you can purchase a home in your own market, rehab it and sell it later.You can also invest out of state in a cheaper market and buy and hold. 

Is it as simple as: "most houses in the area sell/appraise for X, figure out how to build a house for X-20%" and there's your 20% immediate equity in a new build? 

Doing this increased the value of my holding 2.5x, possibly 3x, I will know for sure when I sell in the coming year or two.With that said, DON'T DO IT.Financing, and for the most part the construction, will be the easy part  It is permitting that is the killer.