We are planning to hold it for 5 years and bought a rate cap to cover the entire hold period. 

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.

I haven't hit it hard yet this year,  trying my hand at pre-foreclosures.I don't use a CRM, I'm hand writing letters and reaching out according to a criteria I dictated.  

Very challenging if not impossible to make lot ratios work if the existing property isn't conducive. 

I would recommend leveraging the BP forums to connect with existing syndicators.

However I am wondering what I need to have in addition to cover repairs and others things that I may not be considering.Any advice and recommendations would be much appreciated!

The best option would likely be a construction loan, which can cover both the purchase of the land and the build.

In other words, in the eyes of the IRS, the LLC would be non-existent. 

If you're going the umbrella insurance route, perhaps see if it will cover you for several things including just the routine slip and fall (like mold or earthquake).

However, after receiving the survey results, I discovered that the house is located less than 1 foot over the sublot line (see attached image).Here are the options I’m considering:Rent the current house for market value (~$1,500–1,600/month) and convert the detached garage into an ADU to rent for ~$1,000/month.Relocate the house to split the lot, then sell the newly created lot (~$100,000) while renting out the existing house.Relocate the house to split the lot and build a new home on the second lot.Demolish the current house and garage, split the lot, and build two new homes.At this time, I am uncertain about the cost of relocating the house.Questions for the community:Has anyone faced a similar situation?