First time home buyer need suggestions for grounding up a primary

[Kishor Y.]

As you know, Seattle real estate is hot and looking to buy a duplex house in Bellevue, Redmond, Kirkland or Bothell for around 2400 Sft. My budget is 650k. I can stretch a 100k more. 

I am having hard time to find anything and don't want to spend 800k for a duplex in these areas. I came across BP while doing research about grounding up a house. I have taken the beginner's video course here and looking forward to learn more from this community.

I have found one flat land in Kenmore for 250k and am wondering if I could ground up my primary house by investing 400-500k to build house that I would like to.

1) Can I be able to build a house with that budget in Kenmore ?

2) What are the primary red flags I should be keeping an eye out for?

I am looking forward to connect with people with similar experience around Greater Seattle and would appreciate any references