It seems a lot more expensive for even a bare bones rehab than I anticipated.

If they don't set it up correctly, they could lose a lot of anticipated income and have to foreclose.Disadvantages to the buyer include, if it isn't set up correctly and the seller dies, ownership may be in question with a long painful lawsuit.

The house is not finished, and we anticipate putting it on the market in mid-April. 

It's important to approach this as a business and explain your plan in great detail anticipating any concerns with a contingency plan already in place.

If you anticipate negative cash flow initially, consider how you plan to address this situation in the short and long term.Before making a decision, it's advisable to consult with a real estate professional, financial advisor, or accountant who can provide personalized guidance based on your specific financial situation and goals.

Here's the revised budget for a similar project in New England: Land Acquisition: Approximately $100,000 (reflecting the higher land costs in New England) Utilities and Tap Fees: Adjusted to $9,800 (originally $7,000 in Ohio) Engineering, Building Permits, and Architect Fees: Adjusted to $7,000 (originally $5,000 in Ohio) Construction Cost: Adjusted to $252,000 (for up to 1,125 square feet at $224 per square foot, considering the higher construction costs in New England) Total Adjusted Project Cost for New England: Approximately $368,800For a more ambitious project aiming for a 3-bedroom, 2-bath unit covering 1,750 square feet in New England, the budget adjustments are as follows: Land Acquisition: Approximately $100,000 Utilities and Tap Fees: $9,800 Engineering, Building Permits, and Architect Fees: $7,000 Construction Cost: Adjusted to $392,000 (for 1,750 square feet at the adjusted rate of $224 per square foot) Total Cost for the Larger Project in New England: Approximately $508,800These adjustments reflect the anticipated increases in project costs due to the regional differences in construction expenses and land prices between Ohio and New England.

As long as you have your down payment, closing costs, reserves, and anticipated rent covers the debt service you should have no problem.

Barring anything crazy, I anticipate to get there within the next 1-2 years (15 more units to go).This will put my passive income somewhere in the neighborhood of $15k/month or $180k/year.

They both require the same investment, $10k.Conservatively, you anticipate in 10 years that the property will not receive ANY appreciation.

I will also quickly echo @James Carlson I feel a comeback this summer as well, I am really anticipating a bit of a buyers frenzy come summer and the PCS season here.