Also, in this interest rate environment you're taking on considerable interest rate risk by counting on a future equity out refi at the same or lower borrowing rates, and there is an implied cost to that risk.

I have concerns with due on sale in a potential rising rate environment.  

Your strategy is one of the few that works in this crazy compressed cap rate environment.

What is difficult is trying to foresee which metro areas will continue to grow and prosper in a weaker economic environment...or at the very least not contract.

You'll need one or raising capital will be hard in today's environment.

@Lewis Tabor , if by "local" you mean USA tenants then yes, Japan is far easier to manage by a long shot - tenants stick around 4-5 years on average, with 15 and 20 year tenancies quite common too - jobs and financial status is alot more stable there, and people marry, have kids and move around far less.I own about 12 properties here myself, and manage several dozens for clients as well.The business environment is also far more straightforward and honest.

The auction environment is hot in So Cal right now, so that would probably not be a good place to get great deal.

My attorney told me that this maybe a huge proplem.If there is some contamination come from the trash and if the neighbors use well water,it will take forever to get permit from the environment department.3) I need find out if the deed is subdividable.If the deed says this lot is not subdividable,it's no possible to develop this land.........

Isn't that they same thing keeping children in a clean and socially accepted environment? 

You have to escape the environment and the people for these  types to have a fighting chance.