This is what the HUD chart shows for max rents allowance for every city in our market.You can find the Far Market Rent amounts for every Housing Office in the country on the HUD website at this link. https://www.huduser.gov/portal/datasets/fmr.htmBelow is an example of the data that will be displayed.Comparable Rent Test.

He did all the tests (perks, geology...) but never did architectural plans nor got permits for it.

I buy in good neighborhoods (Two tests: There are no bars on the windows and I don't feel the need to carry a gun.); in Houston area the houses are $135k to $175k ARV; the monthly rent is about $200 more than 1% of the TOTAL COST. 

By 'perked' I am assuming you mean an engineer did a percolation test (how fast water seeps (drains) into the soil) to see where and what size septic tank needs to be installed for sewer waste.As stated in my first post, the tree situation depends on where you are building on the lot.

Stuff happens... and sometimes they don't care if they pay too much or even worse break in / test out contractors on your dime or give work to "friends".4.

Every year you have to pay roughly $1000 for the licensing and refresher courses as well as more money for the blood testing every 3 months.

It will help you to better understand the details and you also have a test-case you can present to investors. 

Buffett is generally sitting on cash while waiting rather than worrying about rushing the cash into something which is not a stunningly good deal.If you already created wealth or have all the wealth you need, focus on high quality assets which will weather the test of time.

(It isn't a test ;-) I've just never had anybody explain what winds up in my pocket in that scenario and a Search didn't provide the answer) Thanks for your time.

They are new construction/ intense rehab gut properties that will qualify with the tax abatement.