biggest issues i see are-finding available land-zoning issues-contractors/builders-financingthere are alot of big players in that part of the market and lots of folks looking to get in, it might be good to partner with a group on your first project like that so that you can pull from their past experiences.  

It's unlikely that the little old person seller/lender could take that lump sum payout, put it in a CD or anything else comparably safe, and get more than they were getting from that loan.So a pro and a con:Pro: Better regular payout than a similarly safe-from-default instrument, like a CD, would pay (everyone here knows that a CD is just you lending money to a bank, right?

I have met with many players in the industry throughout the Southeast and can tell you that they are reputable and extremely knowledgeable.  

This was a commercial loan.Another idea I heard on a Bigger Pockets Podcast was a guy who asked the bank to allow him to deposit $100,000 into a 1 year CD at their bank in exchange for a lower down payment. 

Asset class (A, B, C, D) and, as you mentioned, location plays an enormous factor here.  

Step 2) Identify the key turnkey providers and property management players in the desired location.Step 3) Phone or Email Interview every TK and PM company I find with a website (sorry, but you cannot work with me in 2016 if I can't google your name and go straight to your website). * In this interview I am looking to accomplish 2 things. 

I'm an avid poker player.

One year can generate appreciation in the market, this is the key equity player along with the value of improvements.

Every neighborhood will be different and even the Class {A,B,C,D} of the properties will change. 

Go to as many as you can, and start getting to know the major players in the area.Oh, and also, with the Miami market as hot as it is, you'd be better off looking north.