There are a ton of STRs in the area so I am assuming that everyone is just doing it, but it sounds like @Nancy Stark ran into some trouble with that model.

Also what type of markets have seemed to support this model best?

Cash invested: $440,000 Contributors: Jess Haas Development Type: 3 bed 2.5 Bath "Haas Model" DADU w/ detached garage, new construction.Strategy: Condoize & Hold

There are companies large and small with almost the exact same business model.  

Some suggest investing out of state for better cash flow, but that's not an option for me at this time.Recently, I ran into a realtor who suggested mid-term rentals to construction workers as a more profitable investment model.

But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

FL is super efficient, and not a bad model from the investor point of view. 

Agreed, the "Syndication", "Private Equity Real Estate" or "DST" model are all variations of the same theme: - Pay money to sponsor who is supposed to be an expert investor.- Give them complete control over your money in the context of the deal or fund. - Wait and hope that they deliver returns. 

If you want to have one, fine, but they are unnecessary for a small business model like yours, just another expense as far as I'm concerned.

There are many organizations that can help with this.If you are thinking as a business model, it is going to be a struggle.