I will raise the rents to $700 the first year and up to 800 the second year.

My wife and I just bought 5 acres of land and are building a home where we can raise our two children.  

So appreciation could/would come along with the ability to raise rents (regardless of what SFRs are doing in the area).    

I am 60 years old and was born and raised in Dallas Texas.

We may want to raise debt equity via first position mortgage. 

You could offer to sell back for 12K but you will never see the money, you could raise the rent to $400 but they will default and you will be forced to evict, you could fix and rent for $400 but probably not have any positive cash flow and end up with tenant issues or you could just sell it as is for 12K on the open market.

You may find it easier/safer to just form an entity and raise capital from foreign investors to purchase notes that you place with a licensed servicer.Best of luck,Dave

I will be able to raise the rent to bring it to the current rental market prices and it should nicely cash flow $600/month.

The main issue with growing crops or raising animals is that I don't have any water rights to irrigate.

Also, in Jake & Gino's first podcast, it was mentioned that some banks use $3,200 yearly expenses per unit in their underwriting; I don't know if that's still the case (if anyone knows from experience, I'd be interested to hear from you), but that would bring expenses up to $25.6k/year and put you at -$433/month starting out.Depending on your risk tolerance, it sounds like there could be upside if you fill the vacancies, raise rents, and there aren't significant capital expenditures needed soon- I'm more risk averse though, so personally I'd probably pass in favor of something that provides the minimum return I'm looking for from month one.