In some rapidly appreciating markets, the appraisals may just be behind the times.

Including it in the rent looks like a good idea and you could even charge a premium over averages to make up for waste but remember not everyone will realize that the extra cost is built in and just think you are overpriced.  

What they often ignore is that they can get as much income if not more by investing in dividend paying stocks, especially the ones that either pay a high dividend or rapidly grow their dividend.

Not just the money, but the personal satisfaction of knowing you built something yourself and have succeeded, I could never go back to working a regular job.

Seems like if you’re an agent that has sold land and lots before, you should have known if single family homes can be built on R3 zones!

The duplex is a fairly nice 3b/3ba within walk/bike distance to Bay Area Rapid Transit (BART) with tenants on a month to month lease at pretty much market rate (also they have pets if that means anything at all re: stability). 

I have an opportunity to buy a 5 plex built in 1980, consisting of 5 3 bed room 2 bathroom townhomes, for $450,000.

Details:3bed/2bath (potential for garage conversion to a 4/3 or 4/4 depending on floorplan)1300 Sqr Ft2 DrivewaysYear built: 2000From what I can tell, it only needs minor cosmetic updates, but I'll get an inspection after under contract.Listed at $339,000 (DOM: 83, so I could probably get it for less)There is also a small lot next door that I could build one more unit on, possibly a tiny house.

As my capital has built, this is something I've become more curious about. 

However, there are many nice plots of land available for around $50k, many with several acres of land in a good location.Using a local stick-built company, I could build a 3BR home for ~150k.