The current use of the property as a two-family dwelling significantly impacts its value and marketability, which is distinct from single-family homes.The initial appraisal comparing your property to single-family homes is likely an oversight, as multifamily properties are evaluated differently due to factors like rental income potential and investor interest.

How would they get to any of these subsurface rights with 1/8th acre lots and barely 20 feet in any direction between any houses and any roads. 

Property to purchase would be a STR at $240,000 - so we would need the 20% down payment and we are looking at different options as the source of the funds.

I see some listers go crazy and have 10 listings through out the day.  

But my 4 renters are in there 30's-50's and work 50+ hours / week building naval ships and submarines and they enjoy being close enough to walk to the shipyard and coming home to a brand new house with all the modern upgrades. 

There is plenty of good turnkey properties on the MLS for sale that would cashflow using the 1% rule and you wont have to overpay for them on a "promise".

Once you sell your old property and use a QI, the exchange will be complete and your capital gains will be deferred.

I am a fellow house hacker and think it's the best way to get into the game if your circumstances allow it!

If you want to connect and build relationships with local investors, going to real estate investor meetups in-person is the way to go.

Even then you would still need to actually go get the license and maintain it.