If you are paying a price where the heavens and stars have to align perfectly to make any money you are setting yourself up for a huge failure.

I found a great property where the numbers align perfectly for me right now. but when driving through the neighborhood I found 6 homes for rent in less then half a mile down the same street.

Undoubtedly, Buffet's conclusion must be similar.Lending practices aside, the biggest risk - as your graph and Thomas's post illustrate - is the generation of rising real estate prices (heavily fuelled by select markets within Canada) with no substantial re-alignment to underlaying local economics and household incomes.  

Get with a really good land use planner in the county or whatever jurisdiction your in.. and or civil engineering firm they have probably already been approached.. the first thing I do when I look at this type of stuff that is in an area I am not familiar with I pay a civil that has a land use component in their office for a due diligence package Usually around 8 to 10k.. and since there is a milske on the line probably not a bad use of 10k to figure out what your getting into... all us in the peanut gallery of BP and the internet can make assumptions but what do we really know.. not a lot really..

The inspection should tell you what the condition and life expectancy of all major components and appliances are.  

Real estate is too time-sensitive and interactive for that 3rd party model to be effective.You could look into a Roth held IRA LLC or if you qualify by being self-employed, a Solo 401(k) plan that has a Roth component.  

This process aligns my team and the city as partners on the project.

You need to determine the current condition and usable life expectancy of all major components and appliances.  

It sounds like @Timothy Grothuesmann has provided some sound investment advice, so you might consider talking more with him if you end up deciding this property does not align with your goals...

I think you are going to find that it will be very difficult to do the BRRR strategy from afar unless you have some sort of a partnership with someone with boots on the ground and aligned interests.