(Durr Drug Co. v.

City road ends at park entrance.Considering the land price, infrastructure setup cost each lot cost was coming around $7300 which was very attractive even though most of the houses on them were old and needed good repairs.All other lots except the 59 were in considerable good condition and our due diligence showed that whole park value is going down due to these 59 lots mismanagement for 40 years.As per owner rent collections were around $7200 per month and most of the tenants were very long term (average rent $400 per home) which he receives in cash so bank rolls available to validate.As per our estimate, each house needed 7k to 8k repair to make it livable.Negatives:These homes/lots were owned by same owner for 40 years and he neglected everything which includes tenant quality, infrastructure (such as overgrown trees, bad homes still in the park which should have been removed years back, 3ft- 4ft potholes on the road since its privately owned).Most of the tenants were convicted or had some big felony, these houses were famous for drugs cartels in whole city.After buying we realized things were way worse than what we assumed in due diligence:People staying there actually were involved in gang wars, prostitution, drugs etc.

The dealer typically has the installer they use for their homes.

When I put in an offer now, I feel like I'm doing drugs it's so cool!

He appears to be strung out on drugs and actually creeped out a contractor so bad he left the job site.

One example is a heating oil dealer who doesn't sell propane. 

After I helped clear out the drug using /dealing non-rent paying people that were taking advantage of this guy, he tries to back out!

There are probably more big issues of crime, drugs, turf wars, segregation, poverty, and other issues than most other cities in the US. 

However I see that if you can structure this deal correctly you can qualify for a long time capital gain.Tips to get capital gain treatment on the sale: A) If you have actual investment property and you are dealer: -Maintain separate book-Document intent to hold the property as investment property in Minutes or other document-Report expense as investment expense on tax return-Also use separate entities.Using controlled entity to get capital treatment on land:-it is important that the sales price reflect the property's actual FMV at the time of sale. the formalities of a sale must be observed.

Thanks Caroline, all arbitration was stated on the assignable agreement, he has once backed out by giving my number to his drug dealing, using room mates to call me text me, harass the title company we were originally with.