That being said, a large developer may have to update or put some money toward roads and traffic safety in order to get approvals.

This depends on a number of small factors that can add up to some big questions that need to be answered.I've done some sites in my younger years, so feel free to give me a message with your contact details and I'll be happy to help you out as best as I can.

Some investors bank on the value of a property going up if there's development aka gentrification going on near the property but that's still very risky.

@Conrad Metzenberg What were some of the factors that swayed you to invest out of state?...

So instead of renting out one side at $600 you could rent out (lets assume there's two bedrooms) each bedroom at $400 each (obviously utilities will play a factor in how much to charge per room). 

I recently came across a HUD (US Dept. of Housing and Urban Development) home in an area of NY I've been searching. 

Remember you have to factor in closing cost on refinance and the upfront MIP for fha Loans origination.  

The size of each floor is the main determining factor. 

I don't have my #s handy at the moment but off the cuff, the reality in this market is such that by the time you factor in make ready reno, your 1% is compressed closer to the .7-.8 range.

As a side note - THIS is what gets me pumped about going to work every day and what I hoped for from writing Set for Life - I love that folks like you can develop strategies to aggressively knock out financial worries and then pursue their creative passions in life distraction free.