You can get top dollar likely, but it still needs to be reasonable and comparable. if it’s a declining town with not many attractions or amenities, then it’s likely there’s no rentals available because nobody wants to live there. mot sounds like you may be describing more situation #1, in which case it’s a ripe opportunity if you can get a deal on a property

I'd love to find one in MN, SD, ND or IA @Jordan Moorhead I may know of a MHP for sale in western ND if you are interested!

https://www.zillow.com/homedetails/1409-N-Hill-Ave-Pasadena-...If vacant this could work. It is pretty easy to add sqft in Pasadena. This could be done in 6 months. I'll go drive by and see if it's empty.

Well it rented it for a year and told the owner I wanted to buy it if he put it up for sale.

I’m a Buy And Hold type of guy but the sale is calling me after running the numbers.

U want your parents to talk to their CPA FIRST.. if they go the development route they are now ( depending on the amount of units) creating inventory.. which will be taxed at ordinary income rates ( very HIGH)if they just sell they can 1031  and move on to something else.. many times when you run the math consider the risks of a partnership.. the sale of the land is far better than thinking your going to make some profit.. 

You need to have a purchase and sale agreement in place with a marketing clause to be able to promote a property. 

You have to find those fringe areas and quality neighborhoods to find opportunities.

And if you want, use that money to improve your primary while the tenants pay the mortgage.Done that way you can improve your primary, get two cash flowing properties and defer all of the tax from the gain of your sale.

These opportunities come up only a few times in a lifetime.