Sell Lots in SE Conn. or build houses and rent out

[Joe Kato]

Have 2+ building lots close drive to beach. Question whether we should sell lots or build and rent out/rent to own? Could build smaller homes for empty nesters/millennials or average 3/2 homes for families.

Numbers are:

Sale price 50+k per lot

or build small 2/1 house for $50-100K, rent out for 1000/mo, cap rate 6%

Or build reg 3/2 house for 150k, rent out for 1500, cap rate 8%

considering market is hot, but not forever, what is best play have long term income?  Either sell and put into stock/bond investment. or build and rent and clear 600 to 800 a month.  Building/renting out yields more than 4% average SWR but there are building / ongoing landlord risk too.

thanks