Look for single family houses to either BRRR or take advantage of a recent zoning change that would allow us to split larger lots (.25 acre and up) into smaller lots (.08 acre) and then build either duplexes or townhouses on the smaller lots that we'd create. 

Some facts of the house:Location: Nassau County, NY, Town of HempsteadYear built:1929Purchase price: 290,000 in 2013Condition: AverageLot size sqft: 5000Livable sqft: 760I'm seeing several houses in my zip code that have been demolished and rebuilt into new houses with the maximum allowable livable square footage selling between $1.0M- 1.2M.Which is a better option taking into consideration, profit and capital gain tax (assuming my household income of 80K)1) Should I sell this house as is at $450K2) Demolish this house and rebuild it without taking out a loan.

Share profits and risks, allowing for larger or more complex deals. 

Where it does calculate out to an ROI is in other states where you can buy a 2-4 unit and the other doors allow the cash flow.

This strategy would allow you to sell your property and reinvest into a passive investment that includes bonus depreciation. 

Your space may not allow for this.Food trucks have a lot of overhead right now (fuel costs, food costs, labor, etc.), and are going to want to know that they will have customers who will make it worth their while to show up. 

You have to be zoned for a two family so read the town website building code posting to see what is allowed. 

Hey Jordi - As others have mentioned, a DSCR cash out will allow 75% LTV.

The key criterion you want to look at in a lender is the ability to finance soft costs and interest reserve (a true LTC on all project expenditures) and a lender who allows items such as developer fees and higher contingencies to be incorporated into the budget.

Tenants are eager to get an eviction off their record and landlords are allowed to agree to having an eviction recategorized as settled.