The property is in an Amazing location in a very fast developing area with a serious need for affordable rentals. 

One local investor who is quite well known in the community explained how he cross collaterlized multiple apartment buildings to purchase a piece of land in a great area to develop new homes.

Properties in the lower cost areas may look better on paper but once you factor in vacancy, true turn over costs, and cap ex, things don't look as good.I have been in a few nice multi-family properties in oildale but most are pretty rough and have major issues with deferred maintenance. 

The number 1 determining factor in how your investment performs is going to be the area in which the investment is located. 

Home prices are high enough that it makes more sense to use that land to develop SFH rather than small MF.

@Alina Trigub thank you I will dig in a little further on an area and look into the population growth and other major market factors.

It was a combination of factors.  1.)

Timing is sometimes the most important factor when using a HML. 

Here is where it gets tricky.I own a home, on an USDA rural development.

Consider all the factors.