As such, I recommend 3-bedroom brick ranches.

I would take that 400K and invest in a number of multi-family syndication deals; earning 12%%-15%, with a good, double-digit capital gain at disposition.

Double their current value?

These comprise 2 bedrooms, one bathroom, the kitchen / laundry area and two large family areas.

Things get ugly from there.In my early days, I used to accept multiple unrelated tenants as long as it didn't violate my occupancy limits of two adults per bedroom.

Just need lights in bedrooms since there is no light fixture currently.

The house has a fantastic location, close to the center of the town, great schools, library, etc, it's 4 bedrooms plus 1 office), 2 bath, 2100 S.F., 8600 S.F.

I have a property in South Dakota that I'm looking to purchase.This deal would be purchasing an existing sfr on a double lot, tearing it down and building an 8-plex with 8 garages.Purchase price =35kContact estimated =$575 for tearing down and construction.Leaving some leeway for error I was estimating $635k all in for construction of the property.For the rental portion I am seeing 5-1br/1ba units renting at $7003-2br/1ba units renting at $10009 garages renting at $50 eachCoin op washer and dryer $90 Total monthly income $7,040Expenses Taxes =$12,500Insurance=$2,000 (my estimation have not gotten a quote)Property management= 10%Vacancy =10%I'm not sure if I missed anything but it looked like a good deal in my head.

I might recommend calling the HOA and double checking that they indeed require this process and that they are currently processing the paperwork for the property you are interested in. 

Your equity is decent, but not like you have doubled your money (yet).