Buying 26 lots in southern, TX

[Tony Ferrara]

Hi Bigger Pockets Community -

I am a new real estate investor, and new to BP.  I am hoping someone could help me make sure I am thinking through all aspects of a potential deal.  

Myself and 2 others are purchasing 26 lots in a development in southern Texas.  The plan is to purchase each lot at $15,500 and build small homes to rent out.  We are estimating $55k to build the homes.  I am also anticipating putting 25% into the project and trying to finance the rest.  My math that is $1.43mm to develop and $403k to puchase the lots.  I used a rate of 6% for mortgage financing.  

We should be able to conservatively bring in $950 per month for rent based on our estimations. I am trying to figure out if my ROI estimations are accurate. I am coming up with about 21%.

Also - should one LLC own all the properties, or should each property be owned by a separate LLC.

Any advice, questions or feedback would greatly be appreciated.