I'm sure people here are smart enough to realize that we're only getting so many hits now by Pensacola people because most of us have keyword alerts turned on and it was mentioned early in the thread... it's not got even CLOSE to the inventory of ATL or a larger city. 

Question #1: As the GC, would it be smart to pay myself a small salary through the construction loan in order to bring in cash flow through out the construction process?

This is my theory, and I'm interested what all the smart and experienced folks on BP think about it.

There are far too many people that have watched a house flipping show and are willing to spend 3-4 months, their own labor, etc. for a $10k - $20k "profit" (compensating them for their time) for much of what I consider the smart money to wish to compete with them. 

Private lending has always been a smart money move.

If I was smart enough to predict gold prices, I would have been retired decades ago!

Its a smart decision to diversify into other markets and shield from the potential impacts one could face by always seeking appreciation in a single market.The reason why appreciation and cash flow arent always independent of one another, especially in the case of @Shone Freeman is that a higher cash flow property could be used to buy down the debt in a shorter term.  

Some jurisdictions are a little more vague in the way they word things, so smart sellers could potentially disclose what they need to without having to drop words like “haunted,” “poltergeist” or “murder spree.”http://www.nolo.com/legal-encyclopedia/buying-haun...A Google or other Internet search may also turn up relevant information.

Smart tenants can set you up for all kinds of headaches.  

However, they are co-signing the loan (smart move) and taking on some of your risk.