You have to separate the apples and the oranges and the bananas, as far as if you pull fifteen land sales in a certain area, they can all be so different as far as zoning, topography, utilities, access, regular or irregular parcel shape, drainage, soils, environmental, etc. 

Personally, we control the decision making and do not utilize this fee.

., septic systems, utilities, hookups)?

Does the HOA cover all utilities?

So as an alternative, I'm considering pivoting to a short-term rental, but I'm also realistic that I don't have the time to manage an STR, nor do I know enough to determine if net of management fees and other fees and utilities, whether it's actually a viable strategy, even if I wanted to hire it out. 

LASTLY - is it a bad idea to convert a ground-level utility room of a beach house into a game room?

I do have a few strategies that I have implemented to still grow door-count quickly, utilize multi-family style investing with single family homes, and make sure you are mitigating risk as much as possible. 

The basement is completely unfinished with just the utilities and foundation walls/cement floor.

If you are the most expensive rental in the area, what do the other units have (ie do they have laundry in the unit or is it shared and do they include utilities or not?). 

Create a Joint Venture Agreement that specifies the following: Recitals; Rights, Duties, and Responsibilities of each person/ entity entering into the agreement (Who will pay for what to include, but not limited to any down payment, holding costs such as Property Insurance Premiums, Utilities, HOA Fees if any, Rehab Materials, Contractor Labor, Loan Payments, etc.).