These can then be presented to the county for permit.

the issue right now is that with both prices and rates high, it is very, very tough to have cash flow unless you're employing some kind of creative and/or hands-on and/or value-add strategy, or combination of strategies. 

The issue is that a train track runs behind it and the vibration is horrible (literally feels like an earthquake day and night).

Why would anyone want to deal with tenants and all the issues? 

Right after closing on this im actually looking for another with a normal down payment size lol this is just my second VA home   Yes that's exactly right. 15% equity into the deal typically land is enough to cover it, refinance with construction loan once the permits are finalized and use variance, build, lease up, refinance with DSCR, recycle the same one.

EDIT - On the permits, you will most likely need 2 permits, one for each rental listing.

That way you will NEVER have an issue no matter what the market does!

These will be factors.But even before knowing how much you can leverage up to, see what the DSCR will permit. 

I personally view it as a liability protection issue and base the decision on my costs to have the LLC versus the equity contained within.

I talked to 6 people this week who went out of state for more cash flow and are dealing with negative cash flow now (properties looked good on paper but maintenance, repairs, capex, tenant and PM issues have caused significant losses for them in reality).