Which by the way they don't cover.

The details:Location: Denver, Colorado located in very hot real estate market in an excellent location within 2 miles to downtown.Land cost: $475,000 currently with small 900sqft home on property Mortgage/holding cost: mortgage is $2800; I will be renting home on property for $1750/month (so I will be paying $1000/month out of pocket holding cost) while we go through the permitting processPermitting process: estimated to run 6-8 months in Denver before build can beginLooking to build five, 3-story townhomes on the lot, 1550 sqft each (about 500 sqft per floor), with detached covered garage in rear of lot for four of the units.

As long as the tenants are paying all the bills I would say you have everything covered.

Call me a negative Nancy, but if something goes wrong-say a break in and you were the last one to leave the apartment-who's insurance covers it-the tenants or yours? 

In addition to the bedroom/bathroom work, we also added a covered front porch without a permit that we planned to disclose on the sellers disclosure at the time of sale rather than getting permitted.

In Dallas, my office has covered reserved spots (mostly empty), other offices can't charge enough for low garage reserved spots.

Another nice thing is that the management fees are also covered. 

This prospect, though small, does excite me, since it can be my first baby step in real estate.In Brandon Turner's book about no money down real estate investing, this strategy is not covered.

FYI, I always make sure the windows have coverings available, and that the shower has a curtain if it doesn't have a door.Aside from that, I would consider tile in the kitchen and bath areas, and pull that carpeting out and replace with wood or vinyl plank flooring. 

Your ownership of the condo is from the drywall in, so you only have to insure the interior, rather than the exterior(the HOA covers the exterior).