Golden advice. I have been a real estate appraiser for about 16 years now and the advice Cruez just gave is spot on. Also, beware of log cabins (this is my opinion and may not hold true for your part of the country) since they are not looked upon as favorably as other types of homes by lenders. Why should you care? Well, if getting the best interest rate in a loan appeals to you, then build (or buy) a house that will bring you the best return---and that also means financing as well. The advice also given about buying a "fixer" can be good in that you must KNOW what you are looking at when you possibly buy that fixer upper. Structural concerns and the like should send you packing, not buying. Cosmetic repairs are no biggie really, and you can do the work yourself. There is an old axiom: buy the worst house in the best neighborhood and it pretty much holds true for investing purposes. When you fix up the turd in the best neighborhood, you'll have the highest return. Your idea of buying land to build on, however, is not a bad one. God isn't making any more of it. Think about that.
Davy