@Justin DAlessandro I don't think it is a mistake.

Then you add the price of the dirt and all the soft costs to get the project through all the entitlements and well that's another 80 to 100k depending on how good a deal you got on the dirt so basically this is why in our area you cannot find a lot for much under 150kthen you add 25 to 35k for vertical permits then you add in the 120 to 140 a foot to build and wa la you have about 400k or so just in costs for a 2000 to 2200 sq ft home nicely appointment not builder grade little cheaper builder grade of course. 

Originally posted by @Justin R.

Don't forget about STR taxes (I'm triple taxed at local, state, and federal) and vacanciesSTR regulations change all the time - I wouldn't buy a place unless I was confident in the LTR numbers just in case

@Justin Lehoskay A good tip when posting on BP is be sure to let us know what city your looking to invest in too.

@Justin Phillips Thanks Justin!

@Chip StrozAt 40K net rentable space built in 2019, average construction for non-climate around $30/sq ft, climate controlled much more, that's about $1.2 mil just in construction (plus land), so your answer is yes, they are trying to re-coup their investment from about 2 years ago, but on the positive side, if at 43% occupancy they are already making money...breaking even, that's pretty good considering any other RE investment at less then 50% occupancy will not be cash-flowing....but again, that is if the numbers are right and there is room to grow it to >90% occupancy.

@Justin Phillips the warranty is my biggest concern right now but I will keep you posted if I can find something 

@Justin Seaverns Are the homes on their own land or in mobile home community?

When we got to Houston I was surprised by how comparatively few small MFR properties were on the market (or even just in existence as I drove neighborhoods), so we shifted our focus to SFR, and wanted to get one that could accommodate our 36' RV.