I have a general strategy question: In some parts of the Metro Atlanta area, there are working class neighborhoods that have vacant properties. How viable is doing total teardowns and build ups, assuming acquisition and construction costs fit the 2% rule?
Will the cost of new construction $200/psf be able to be supported by the sale price or rental income that that property will produce?
Wait... there are other factors you need to consider before tearing down a building. There are tons of emotional and social impacts. Even if the city allows it, the neighbors and news crews MIGHT make a villain out of you.
Keep on exploring the option but widen your decision matrix way beyond the 2% rule - which should be customized for your location anyway.