I want to build a stream of income. 

In your example, if the tax assessed value (which is not an appraised value) sets the value of the improvements (dwelling structure) at 100K and the value of the land at 25K, then 100K of the 125K total value of the property, or 80% of the property's assessed value is attributed to the dwelling structure.  

You don't avoid the cost of capital by selling, as you incur costs (closing costs at a minimum) to get the capital when you sell; you also stop your depreciation (cost) and appreciation (cost) streams on the asset you sell and you eliminate the cash flow (cost) you had on that asset as well. 

As such, we are interested in long term buy and hold real estate investing with a specific emphasis on a cash flow revenue stream.

@Marcus Martinez Those are just more single family dwellings which would still leave you renting out rooms if you wanted to collect rent from a tenant.

My intention with my direct mail wasn't wholesaling, but maybe it will provide another revenue stream for my purchases.

This business model has four streams of income: land lists are sold via the Internet, tiny house consultations are provided, small house overnight experiences are offered and of course small house solutions are soldAny and all feedback is appreciated.

Terms do not effect the value of any property, don't pay more for terms, especially if you have a balloon payment down stream.

The zoning map shows the home as R2, so two dwellings on the property is acceptable.  

Or should we satisfy ourselves with the fact that we have a small income stream with the properties and equity is building?