Looking at buying a 20 acre plot of land that is currently zoned R3.

Personally, I don't like to put my money into something I can't control - yes the stock market has been great, even during COVID, but I would rather put my money into something I can manage (even if not 100% due to moratoriums and zoning risks) versus a stock that I have no control over and is basically a legalized form of gambling. 

If it is a shed and you get a code violation/red tagged from the city you will run into problems when you go to sell.

Property has to be zoned as a 2-4 unit in order to use the additional income to qualify. 

Finding out city zoning for new construction on this property, finding out about environmental impact, speaking with the development head in the county, also getting information on the water sewage and electric for the property and what it’s connected to.I offered one of the investors, let’s do the flip.

It does cash flow better then a SFH, you are correct.In my case:- it had to be re-zoned as MF with the city- an additional post office address had to setup (1A, 2B)- natural gas line was split and 2nd meter was added- 2nd electrical meter was added outside- 2nd electrical circuit breaker panel was added in the basement next to the other panel, and all the wiring for upstairs unit was moved into it- city does not allow for a split up of incoming water to add 2nd meter so both units have to share it.

The first question is, what is the allowable number of units based on zone/density?

If the house is in a historical district, there may be covenants that stop you from making certain upgrades without a ton of red tape.

Staying in the High level data zone will not help you take action.  

We had a bunch of calls with our attorneys when we were getting setup in the 2 states and had a banker who was on the board of the NE Banking Commission on as well, so we should be good to operate in IA and NE without much red tape.