You already have utilities on site, so its a cheap solution and highest possible return if its a slow market with low home values.

That project may have been a bit more than we were completely prepared for, but we're doing the work ourselves and will have a great equity return as well as good income.  

SFRs normally do have higher risk for a capx and/or vacancy event to create 0 or negative returns for the year.

Everyone raves about Tech Terrace and the area near campus but the houses are so expensive that your return decreases really fast.

It's truly good for society, and I make a really nice profit that rolls into the new homes, while allowing the 12-25% cash on cash return to fund the things above.

I'm generally finding about 5.5% gross returns on rent, all said and done, maybe I'll cash flow $200-300 per door with 30% down, but on a $600K plus property, the cash on cash return is pretty dismal. 

(Not by using Google maps because they can easily be outdated pictures) There should be some.

If you do make an offer, add a condition that the seller furnish the last two years of Schedule Es for the property from their tax returns.  

Our company specializes in the "end buyer" we work very hard to ensure solid returns on deeply discounted properties. 

Done right, they can easily add a lot of value to the property, but not if they cost far more than expected.