Environmental: As a corollary to point 2 above, when Tenants pay their own way, they use MUCH less.

Beyond understanding the financials, seasonal issues and markets, you need to understand environmental issues, the liabilities that may arise.

Federal law puts any deeded owner on the hook for any environmental damage and cleanup even before your ownership.

What kind of environmental do you need to do to make sure the old gas station site is clean?

I've seen on the tax sale list and people bought them: side of a cliff land at bottom of man made lake land on Army bombing range House torn down in 1972 on lease land, only the house was for sale land under railroad tracks sliver of land too small to do anything with environmental problems even super fund site, if you don't know what the super fund is look it up, its not good and certainly not super.

In California we have very strict environmental standards that, depending on the location of the property, can add time to projects getting the necessary approvals, etc.

I used to work for an environmental company and we charge close to $5k for a Phase I.

Mostly, I would stick with residential...although under the right circumstances, I might consider an office or retail property (industrial areas and industrial properties carry a lot of environmental risk and probably best avoided) That is my 2 cents.

Environmental phase one, site inspection, and cost reserve stable will cost some money a few grand or more.

Pollution and potential hazards from the burning itself, yes.