There are numerous other factors to consider but I just don't see how it would make good, financial sense.  

Being a contractor for over 20 years and having formal education in construction management (Bachelors and Masters) and being friends with and having hired numerous construction attorneys, i can assure you you will not get a cost plus contract with the government that pays you each week.

I have watched my local real estate market closely the past few years, I am on sites like craigslist, zillow, and loopnet numerous times a week seeing what's on the market, what typical rents are, what different types of properties typically sell for. 

I have watched my local real estate market closely the past few years, I am on sites like craigslist, zillow, and loopnet numerous times a week seeing what's on the market, what typical rents are, what different types of properties typically sell for.Over those few years I have seen numerous different properties advertised online in my area for owner financing, so I know there are plenty of property owners/investors that are open to it.

If you want a simpler book with lots of explanations for those starting out Brandon Turner has several good books.

This is frustrating to SVC since they have tenants (like a SFH), but no house (the building) for them.The old option was for SVC to take $2M (I just picked that number...it doesn't have to be exact for this explanation) and build a building for each waiting franchisee.  

Hi BP, I recently walked away from a deal because a seller home was unpermitted to be a multi family ( he also had tenants who were paying $1,150 which they broke their lease ,because of numerous reasons at owners fault) I have a buyer willing to buy but seller doesn't want to drop price any further to what the buyer will be comfortable with, should I continue to see if a buyer would be willing to buy it unpermitted at agreed upon price or move on to the next deal ( owner and tenant both called the police on each other, it was a show) it is a good neighborhood with waterfront homes.

There are numerous properties like this, it just takes time to find the right balance of purchasing in an older complex (lower cost) that's well maintained.

I've looked at these areas numerous times.

I currently have a great night time position that allows me to have numerous time on my hand to take up investing.