Aside from that tenant, the rest of the building is in bare shell condition.

This is as close as you can get to guaranteed and is the bare minimum.

What if i where to say i turned a 40k a month income from just bare land.

Aside from that tenant, the rest of the building is in bare shell condition.

I"n a flood zone can push your numbers to apoint of bare profitability. 

He bought a new house around 1995 and allowed one of his sons to live in it for several years, paying only to cover the mortgage.Subsequent to his son purchasing his own home approximately 2 years ago, the house has been mostly empty except for a few months when a family friend stayed in it and only paid to barely cover utilities.

The big investors in the town have their hands tied and are barely making it.

I have not seen many do that.on our bare land subdivisions we do that .. also we test the soil for certain elements if its been farmed heavily..

Nonetheless, even with their long experience, they often barely make a profit, which they say they don't mind - because their goal is to gentrify the whole neighborhood, one property at a time.

Here is my current understanding on 2a - how to calculate the depreciatin of replacement properties.Realized gain for R = capital gain + depreciation = 168K.The total basis for property A & B are (225K+150K) + purchase cost let's say 8K - realized gain for R = 215KThe basis is splite proportionally between A & B - So A is 60% at 129K and B is at 86KWhat I am not clear now is how is the land value deducted from the basis - percentage (of land to purchase price) based or absolute land value based.