Hello BP community:I am under contract on some land that I am considering building multifamily on.It appears I can build approximately 80 units on the land (based on permitted density), which could be more or less units depending on the exact style of units we would construct (one or two story, etc).

My contracts for land are contingent on the land entitlement being successful that way I am only on the hook for my pursuit and rezone cost if not successful.

Now you have around $200,000 in hand . (2) Are you also telling him to build another 200 units in a Class A location but this time on more expensive land to get up to the 2 million???

Here is a framework to think about how buying properties creates the most tax efficiency for you.The 6 levers of depreciation:Lever 1 - % of LandOne of the components of a property is land.Land is NOT DEDUCTIBLE, so low value land properties mean more tax deduction.A value of your overall purchase will be assigned to the land or lot.You receive no near-term tax benefits for buying land.For example - If you buy a $2 MM industrial building outside a rural town on 5 acres, the land value could be $5k an acre.

From purchasing land to breaking ground in Columbus is typically 60 days.

Geez  I would be talking to your HML right now as I doubt they want to take it over.and try to get a workout with them ASAP.. sounds like its going to be  a loss anyway you cut it and I have to think you put up cash for a down payment as well. maybe someone else will have some pearls for you.Wholesaler is going to low ball you for sure.

@Stuart UdisYou forgot to have the Wyoming LLC owned by a Delaware holding company that has the asset then put into a land trust.Then seek 100% financing because you are broke from spending $10,000 setting up this corporate structure to protect the zero assets you have.

ARV is irrelevant for taxes.Then you subtract land value and depreciate the rest.

I would be open to any additional questions you have about property management apps and/or land lording. 

I am under contract with a land deal, on Marrowbone Lake In Joelton.