Based on income alone, I could buy a 30k lot in sky harbor and build a 2 bedroom 1,400 sq ft cabin that generates 50k to 60k in rental income all day long (if not closer to 55k to 65k).   

.✅ Reduces Stress & Burnout – Investing should be about building wealth AND freedom.

That’s the magic of real estate compounding over time, and it’s stories like yours that really highlight this.. from what i read in the street journal, that slow build often outperforms shorter-term stategies.From an investor-friendly agent’s perspective, being willing to dig into the neighborhoods (driving for dollars) and having a robust network.. from probate attorneys to local contractors.. can pay off big.

So, if you don't know how to build financial models, there are some available that are pretty good online (adventures in CRE is a great resource).  

I think working with an architect to build something really unique and custom is always the best move if you have the budget for it.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense. 

Its a 12 unit building so lets say 2 persons per unit . 60x2=120 a day per unit 120 x 12 units = 1440 gallons Depending on area lets round it up to an even 2000 gallons . 

@Ella Marie the Pro's are you can build long term wealth, the Cons are you can lose money if you cannot properly quantify risk.

There are plenty apartment buildings, the issue is finding them at the right price point - as in any hot market. 

You have to weigh the benefit of the insurance claim payment versus potentially having your carrier cancel you and perhaps get black-balled by the insurance industry.