Also, private money, although not cheap compared to conventional rates, would allow you to get your foot in the door and likely refinance, once you have built up your employment history.

To enter the property you have to go through 2 12 foot gates.

Yes it's 304 sq foot home 2 floors.

Over time the appreciation and a modest rent increase of say 3%/year is going to help you keep good tenants and really build up the equity.If your primary concern is cash flow, and not long term appreciation gain, then property B is probably a better option as it starts you out on the right foot towards that goal.And finally, if you really want to build a portfolio and have the means to do it.... 

front foot assessment fees?

Sounds like you're starting off on the right foot.

Some more realistic numbers: Purchase Price $650,000 % Downpayment 25% Interest Rate 6.50% Mortgage Term 30 Downpayment $162,500 Loan Amount $487,500 Yearly Principal+Interest $36,975.98 Monthly Payment $3,081 Expenses (Yearly) $5,000.00 Gas Electric Water Insurance $2,000.00 Taxes $3,000.00 Other Expenses (One Time Only) $174,000.00 Permitting $50,000.00 Design Fee $20,000.00 Real Estate Fee $99,000.00 Closing Costs $5,000.00 Other Square Footage 3,000 Sale Price Per Square Foot $550.00 Total Sale Price $1,650,000.00 Building Cost per Square Foot $250.00 Building Cost $750,000.00 Holding Period (Months) 22 Holding Period (Years) 1.83 Holding Costs $250,955.96 Payoff of Mortgage $477,232.58 Counstruction Loan Interest Rate 10% Construction Loan Prinicipal and Interest $893,198.23 Construction Loan Interest $143,198.23 Total Profit $28,613.22 ROI 1.8% Annualized ROI 1.0% Interested to hear what you guys think of the above numbers.

You can get a 20 cubic foot fridge for that space. 

I understand your concern about the saturation, wholesaling is growing in popularity since its such a great way to get a foot in the door. 

I wasn't really interested in buying this house, but my brother and sister couldn't afford any type of utilities or repairs, so it was our safety from footing all bills until the house sold.