I'm in East TN so where is your purchase located? 

Also, locate any holes on the outside of the house and fix them.

However, land pricing is based on many other factors such as zoning, location, the city its located in can make a big difference if there are certain factors that give developers incentives to build there such as transit, low income, walking distance to rail and other things.

This includes factors like price range, preferred locations, and any other preferences you have.

Ask to see a copy of the lease and look for the length of lease, current rent amount, tenant obligations like paying for utilities and adhering to house rules and look for Landlord obligations like things the landlord may currently being paying for (like trash and water)Make sure to have an assignment of the lease and clear language on the security deposit WITH interest shall be transferred to the new owner at settlement.Consider tenant quality - what’s their payment history looked like, obtain rent receipts or bank statements from the seller to review on-time payment history.

Does the location matter?

We're developing units in the backyard of a property, with the numbers looking promising:Purchase Price: $1MConstruction Costs: $1MCost of Capital: $200KAfter Repair Value (ARV): ~$3MProjected Profit: $500K - $1MTimeline: 9 monthsTo finance this, we're raising $500K in equity and securing $1.5M in debt.

Depending on the size and location of the acreage, I would split off part of it and subdivide and sale as business or house lots. 

I looked at various other models with numerous other companies, none of them had a more secure, risk free business model.

Well if you live in a massive apartment building the debt that underwrites that building is likely a commercial loan wrapped into a security instrument.