So you are putting in various inputs/assumptions, like gross revenue (total sales prices of homes) less soft costs, hard costs, city fees, desired profit margin (i.e. 15% of gross revenue) = residual value (what the land is worth).

You can have a great STR in lots of places that do well. 

Read books like Set for Life by @Scott Trench and Start with Strategy by @Dave Meyer to get the mindset of starting on the table before going too deep into an asset class or something like flipping.

I’m in the process of searching for land in the Houston area to then build a 4-plex on it.The plan is to self-fund the purchase & construction, rent the units and cash out with a mortage.I like the idea of serving lower income families and therefore don’t shy away from section 8.This is the first time I do something like this, so I’m throwing it out there in hopes of hearing your thoughts and learning from your experience!

Like John said above, look into FF and also list on Zillow. 

Depending on what aspects you would like them to handle vs you then you may be able to negotiate that 20% down lower.Alternatively, look into medium term rentals.

Looks like Ellijay going through the same thing.

I would like to know the answer to this question as well!

This sounds like a GP/LP Waterfall deal where there's a 16% pref and the LP (you) get 30% of the profits after refinance.

I think it is like trying anything new, do your research, find something that looks good (nothing will be perfect and there is always something better) and just do it.