If you Airbnb your home a lot you should get additional coverage. 

I have five townhome condos in addition to a triplex and a larger MF.

Additional costs for snow and heat could add up as well.

This doesn’t really provide me with any additional income as it pretty much covers the payments of 1500/month.

So financing it is an issue.I have experience with several remodels, additions and gut rehabs for my properties where I was the GC (planning, permits & inspections, subcontracting)I can probably start small and purchase cheaper properties with cash (around $100k+) and rehab/remodel/rent/flip and build up a portfolio.

The best he can hope for is to plead ignorance; blame the contractor, and hope he only gets charged for the water that has been used and not being fined in addition to usage.  

Duplexes give you the additional tenant while still being in nice neighborhoods.It is even more critical to screen your tenants effectively for smaller properties as even one vacancy can create a huge headache. 

He likes to be paid that way on fixed cost jobs.This company will be building a garage for me and a room addition on another house as cost plus. 

You'll need to check with your municipalitySome additional food for thought:Lot splits in my area take a lot of time, patience and moneyYou can finance the construction of an owner-occupied 2-4 units with an FHA loan for as little as 3.5% down but the requirements are kind of onerous. 

In addition to finding out the values of other properties in the area, the only way you'll be able to get an 80% offer accepted is if the property needs some work or is distressed to some degree.