if those are lots in a major metro area with a ton of new construction and infill.like Portland or Charleston or charlotte or other really really hot markets.. this would be as simple as sending it to local builders which are the ONLY buyers.if its rural not much activity it takes a lot of time sometimes years to sell vacant land.and given the fact that there is a pressing family need..

Also, the majority of Title Companies do not specialize in Investor deals so finding one that is Investor friendly is key.I am the head of the Investor Division at World Class Title and we specialize in Investor deals.

I've worked with this population in the past and the majority live in C or D class neighborhoods.

Using your analogy with the 2/1, you need to find it for lets say ~130k and it needs 70k worth of repairs/remodeling to give you an APR in the 250-300k range and make sure you can rent it for >2k a month. in order to make the greatest cash flow you need to find the most rundown houses to fix, or go on the less desirable areas. unfortunately that's where the majority of investors are as well. i'll give you an example of one i just completed. it is in an up and coming neighborhood. some parts are scary, while new construction of luxury townhouses are within a block. it's a duplex with a 3/1 and a 2/1 (i know i said i wouldn't usualy get these, but it was a really good deal).

Selling a property in the first 7ish years with a mortgage is not great because the strong majority of your mortgage payments are interest and the principal balance doesn't go down much. 

I think it would give a major jumpstart to rentals for me even though the only money made is in equity.

So the likely hood of a buyer wanting a major component to be replaced should be rare.

However, I do get calls for major plumbing repairs, air conditioners, and hurricane damage - hence the need to factor in maintenance.

It wasn't anything major, but certainly some work.

For instance, if one’s net worth is $500K, and most of its tied up in real estate, would it be a good idea to keep the next investment at $100K or less (20% of total net worth) from a diversification standpoint to prevent from devastating loss in the event something majorly goes wrong with the property?