With Texas high property taxes, cash flowing may be a challenge...We invested around $400,000 cash to buy the land, pay for permits, design, architecture, etc..

@Svend W. your lease should have clauses that describe what happens when there are unpreventable situations that prevent occupation (like a tree falling on the house, or pipes bursting)--this clause should be designed to limit your liability in such situations. 

For instance, inadequate/improperly designed water diversion systems can cause major problems (e.g.; rot, masonry degradation, foundation settling) that won't emerge for several years.

@Stephen BrownI am a licensed salesperson without a Realtor designation or Broker affiliation.

Selling real estate in a low value market IE median price point like some of the little mid western towns that hovers around 100 to 130k or so that can be a challenge if you cant do volume.. and I can see why wholesaling is so popular in those markets..

PS Chris, no I think your post should be very popular.

They do have some nasty easements running through them and a typical builder would be required to have a custom house designed for two of the lots and the other two while small I already have designs that would work.

I'm working with a CPA who is arguing that STR should be considered a passive designation and therefore losses in our holding LLC cannot be applied to my W2 wages (which are > $150k).

Check your Governing Docs and any "design review committee" or similar requirements.

Recommend using a contractor with experience with 203k's such as a contractor with the designation as a Certified 203k Contractor.