But, if a cost-seg study is done on the old property, you can manage Sec. 1245 recapture tax by doing a study on the new property to confirm it has as much or more Sec. 1245 property.You cannot swap a fully depreciated gas station for a raw piece of land and avoid recapture - you must replace all the 1245 and 1250 property.3) OZ - Sure you can defer your capital gains for a few years into an OZ fund, but the magic of OZ investments is the ability to achieve tax-exempt growth after a 10-year holding period.

& different parts of the asset can be depreciated on different schedules.To find out the useful lifespan of each component, you do a cost segregation study to analyze all of the parts.The raw land can't be depreciated so you start by giving that a value first.But other items can be depreciated on a quicker timeline.A roof, road, sidewalk, fencing, walls, gates, doors, latches, flooring, air conditioners, pavers, curbing, landscaping, etc.The IRS has a depreciation schedule for each type.Some parts are 5 yrs.

Whether you’re looking for off-grid living, investment property, or future development, land sales in this area can be a lucrative option.Types of Land: Fairbanks has a variety of land types available, from raw, undeveloped lots to partially improved properties with utilities like electricity or water access.

I want to slow my life down a bit and enjoy the fruits of my labors (I had cancer a few years ago and I acknowledge my time to enjoy life is finite).It occurred to me that I should just cash-out refinance my properties that are fully stabilized and that have significant equity, but that can also easily support the new debt incurred. 

Also, the areas that have raw land for that kind of project, are not close enough to the metro city center, hence I am afraid of the demand to buy.

I guess I was being short sighted and was a bit too caught up in the raw real estate numbers. 

However, if you are looking to grow your money or make income from raw land it is very difficult to do so.

As for loans, land financing can be tricky, especially if you’re looking at raw or undeveloped land.

These discussions and thoughts will hopefully help other people make decisions about what they want to work toward and when they want to enjoy the fruits of their labor.

Think of it like planting two trees instead of one...they might not bear a ton of fruit right away, but over time, you'll have a richer harvest.