They have certain requirements about property types (no raw land, no mobile homes, must be income generating), and will expect at least 30 - 40% down and cash reserves in your IRA to cover unexpected expenses.

Hi BP,Regarding raw land - zoned AG.

Do you buy the raw land and they build but you own and manage?

It has additional square footage in the basement, which is divided so each unit has its own private area.INITIAL INVESTMENTPurchase Price $110,000Fix-Up $10,000Closing Costs $2,000Future Cash-Out Refi Cost $2,000Outstanding Tax Assessment $2,500City Change of Ownership Fees $1,000TOTAL = $127,500INCOMETotal rents of $1800/mo: $21,600Vacancy+Bad Debt (10%): ($2,160)TOTAL = $19,440EXPENSESMaintenance ($2000)Utilities ($1600)City Fees ($140)Credit Checks ($100)Insurance ($1500)Taxes ($2000)TOTAL = ($7340)RETURNSNOI = $12,100Monthly raw RV ratio = $1.8k/127.5k = 1.4%CAP Rate = 9.5% against $127,500 initial costTotal Return = Depends on leverageI would plan on this being a long term hold with an eventual exit to another investor, owner occupant, or via a rent-to-own land contract.I would be more comfortable with the deal if I could get the purchase price down and achieve a 10% cap rate.

Not only should you see if the property makes sense as a buy-and-hold from a raw numbers perspective, but also from a comparative perspective.Just about any property will cashflow if you have enough equity into it, so just saying that it will cashflow if you've built in about 80K in equity doesn't mean it's a good rental candidate.

There is also raw land down in the racetrack area, but that really is gambling.

Many Owners and Board members find this written summary useful in assessing the status of the community, during the reporting period, as opposed to only being presented with raw data like other Property Management companies have been known to present in their management reports.

I have also been kicking around the idea of buying some raw land that is between the two properties I currently own but I know I would be opening up a can with the development of that land.

Do you mean on raw land?

I am a fix it up and flip/rent guy that has some raw land landing in my lap through an inheritance.