You can also call local small and midsize GC's for their budget guidance on hard costs.You can do a very simple proforma as follows:Revenue from salesLess Broker fees for condo sales, closing costs for unit sales, warranty costs for units salesLand, closing costs for land, broker fees for landSoft costs, architecture, civil eng, MEP/S engineering, soils report, Phase 1 if needed, developer insurance, prop. taxes during const., marketing, subdivision costs, HOA formation and reservesHard costs - GC contract costs, overhead, profit, insuranceDevelopment impact fees, permit fees, school fees, park fees, etc.Loan costs for const. loan, interest carry, loan fees, appraisal costs, lender legal, funds controlDeveloper feeEquals (what's left) - developer profit, normally shared between equity investor and developer. 6.

redemptive phase.

There are hundreds of things that can go wrong.A developer generally gets investor funding for the entitlement land phase, then construction phase, then stabilization phase.Sometimes investors will do all phases and other times just one part of it and they want to exit.Some larger projects can take 5 to 10 years to complete.

The previous owner was passed away in beginning phases of turning it into a duplex; its is zoned R2.

Hey guys, I am in the educational/planning phase of my real estate investing career.

I don't ever suggest you return it to the tenant and force the new owner to get it back because that could be a real mess.As others have said, you should get an estoppel certificate during your inspection phase and then provide clear instructions regarding the transfer of funds and other items so all parties are clear.

Decide if a direct sale, land joint venture, partial sale of phases or product type (i.e sell commercial and build apartments) or a development scenario makes the most financial sense.

That being said if you are not a real estate professional and if expensing all of the appliances causes your company to lose money this year you could have passive losses which after a phase out can not be used to reduce income from say a w-2 job if you have one.

My current business was basically a home run, but I burned through money in failed endeavors before and a failed marriage before, so my "family credit score" is in the rebuilding phase, haha.

Let me start by saying I’m not a cpa so this isn’t tax advice, go consult a cpa.From my understanding if your AGI is above 100k they start phasing out how many losses you can take (capped at 25k if you make under 100k), once you hit 150k then you can’t take any losses.The only way (I’ve seen) around this (assuming you’re married and you file jointly) is to have one of you be a “real estate professional” which means you spend 750 hours a year working actively on real estate and that you don’t spend more time than that on any other job.If you meet that criteria you can take unlimited losses and use that to offset other income, so in theory you could make say 300k and show losses of 350k and pay zero income tax.