For some reason the purchase price to rent ratio has always been pretty lopsided in favor of the renters here.

Our goal is to expand our RE portfolio and take advantage of the current favorable rates.

Since its vacant land, can work in your favor if you need to foreclose.  

I also did some research on the history and usage of these parcels and noticed that the Supreme Court recently ruled in favor of landowners, in that if a rail line is abandoned, the easement becomes void, on fee simple land.

I just want to make sure that in the event courts open up, that an eviction process would go in my favor.

But it could also play in our favor in that the capacity would limit people, but those that are more concerned about it wouldn't attend.

I think ultimately, I would say that it is better to build now with those favorable financing terms vs waiting for the cost of construction to come down with unknown financing terms. 

@David Levin of course I know nothing about your market, but my experience (Class A urban) has been extremely favorable with studios.

CT will be more favorable in terms of price points for an entry level real estate investor. 

Nic, if your sister doesn't have either the money or the credit to buy a $420K house you're not doing her any favors by buying into this primary residence.