The area seems to continue to gentrify, with demand continuously rising.

@Jody Roussel  At those prices with 20+ acres, you're looking in Rural Maine, and probably very rural.The trick with subdividing and developing that kind of property is DEMAND. 

CAP rates were very compressed mainly due to low interest rates and demand.

In fact, when he had space for rent, it's a fraction of rents demanded in nearby heavily trafficked commercial areas, so the demand is high.My dad like renting to office tenants, as his insurance is a fraction of renting to corner grocers, or small coffee shops, where insurance rates are higher due to foot travel, such as slips and falls. 

That areas BFE is much lower and demands a ridiculous price for flood insurance. 

But I held my "finger on a trigger for too long" and in a state of fear-impairment never dove into REI ..allot was at stake OR so I thought.. posting to Victoria & Vancouver BC (extremely expensive real estate market), raising two small children on only one average family income (barely meeting the ends), demanding work (out of the area taskings, 24/7 duty)..

I bought a double in 2010 when my wife and I wanted to live in the city.2 years later we had tripled rent due to demand, and moved out.

Duplexes that fit that description are in high demand and go quickly in Lubbock.

Rates are expected to stay in the 3,s and could get to go lower that will create demand pushing competition and prices.

They could demand a replacement of the sewer line prior to approving the ADU application which means there may not be a choice of not doing it anyway.