I mainly flip but it seems that most of you guys on this post like to do passive and rental income.

The main concerns that come up right off the bat are timeline and quality of materials/work done. 

My thought is I can buy the raw land, and sell it back to the owner of the main parcel, who recently purchased it from a bank as an REO.The property has access to a main road without going through the other parcel, but is currently behind a contiguous fence from the other parcel.Does this strategy make sense, or am I putting myself in a poor position by doing this.

I will say I could see major perks in not having to deal with or hear about tenant drama, or waiting to hear if a recent hurricane tore up any of your houses (like I am right now), but there are big financial benefits to it if you're willing to deal with all that.

@Timothy Martin  I use actual MLS data - one of the benefits of being a licensed agent.Zillow's "zestimates"are notoriously bad.  

That was the main reason that I did not invest additional fundsGreat Job and thank you IAN

It's a commercial property on main st. in a town of 50k people.

@Manolo D. we were definitely happy with the overall outcome. the GC we used did a great job. we plan on using his crew again on our next property if possible. however, I'm guessing you're referring to my other discussion about rehab costs from my contractor. we were happy with the outcome of this project but I don't have anything to compare this to. the fact of the matter is we don't know if his prices were fair for the market. we were in very unique circumstances on the last project where we had flexibility with our budget, so even if he charged more than the competition we still came out on top. moving forward we need to know more details. we are currently making offers on properties in need of rehab and we're using this GC's quote to help us budget for our max offer. if we can use him and still make a competitive offer then we will but we are getting beat by other offers. we just need to analyze all factors to see what we can change in order to compete. the two main concerns are that we are up against other investors making cash offers so they have no loan contingency and no mortgage payments inflating their holding costs, plus they probably have cheaper labor and material costs. so, we're just trying to analyze everything. our GC did a great job, only went slightly over budget compared to his original estimate, but we did plan for contingency and I ended up doing a lot of the work, so we were overall under budget, and he offered the quality of work we were happy with.

But if you main objective currently is to open an account for rent payments that should be very easy to do.  

You won't notice the difference in megapixels and you won't have done enough to tighten the gap between what you have and the potential in a DSLR.also a DSLR won't teach you proper lighting or composition so you wont' get those benefits either. your cell phone camera is about 21mm focal length, which is nearly ideal for wide angle photography anyway.