There are thousands of (nauseating) posts (ads) on this subject.

The transaction was a little complicated because the buyer was a group formed by an investor owning a 40% interest in the subject property (my partner and I were the managing partners of the current owner entity and 60% owners.

Assuming a 15% average negotiated discount, the $607,143 would secure a diversified portfolio of 37.15 acres, or $16,343 per acre.Attached are some screenshots of the "tool" and a "pre-screen" polygon of areas that I have subjectively deemed promising.

Knowledge of property values both in the geographical area in question as well as the subject property type3.

I am assuming the Subject property is not currently zoned commercial and cannot legally have 5 units, except for the adu laws?

On the flip side, income can be less predictable due to seasonal fluctuations, they require more intensive management, and are subject to varying regulations.Key Considerations:Financial "Rip Cord": Determine your financial threshold for continuing to float the property without a tenant.

The opportunity to buy from the seller might be doing a Subject-To deal where you take over paying the existing loan.

Hey Rene,Depends on your specific situation and the subject property, but it is possible. 

However at least in our market you have to have POF or Strong letter from your bank to get the seller to allow you to go into contract subject to entitlements.. then you need usually 50 to 100k in EM to tie it up.. then you need another 50 to 100k or more for entitlements.. then you go into contract with one of the national or regional builders and then you pray they will close on time. 

You cannot use "short term rental income" to qualify on the subject property BUT you can use 75% of the appraiser's rent valuation on the 1007 market rent schedule.