I did go to the manufacturer, I met the owner and the manager, and they all seem great.

This was a 700 square foot house with two adults and four children aged 5 - 15.At least the lamb was wearing a diaper.What's your pet horror story?

We loved the location, and the upside the owners were in their late 70s and hadn't updated the hotel in a few decades.

We will not use Airbnb, due to their anti-owner policies. 

A compelling enough piece of land has not arisen yet to start this journey in earnest yet.The analysis is effectively the same as buying: what are all your costs, what are your stabilized cashflows, and what is your terminal value, take your overall timeline and determine your return.In Cincinnati, OH, during the run up (in particular, but also pre and post peak) the major owners in the market that have historically acquired existing, started building.  

However, my lender for NYC area mentioned that they could use any unit, even the smallest one, for owner occupancy.

I've also noticed a few listings with retiring owners so I'll be polishing up my seller financing talk track.

That being said, it is hard to theme out a 4-5 bedroom home, so they tend to be more 'safe' or 'plain', while the owners of the bigger homes have more options to theme and make them stand out and put themselves away from the pricing wars because they have something more unique. 

Owner is willing to assist with financing property is free and clear.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them.