Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

Technically, developers come up with a land value for what a builder may be able to pay for paper lots by using a proforma (financial model) to determine a residual value. 

Checking their calendar helps you determine if there is strong demand.

I've had some early success but thought I would put it out there:So simply put...

This includes understanding your budget, securing financing if needed, and determining what you can comfortably afford.Research is key.

When you are investor friendly it means you understand the metrics of the buyers property search.I have seen so many agents get comfortable and simply add their new buyers to the "Hot Sheet" and they blast the buyers with properties that do not even fit the buyers cash flow needs or budget.

Right now, the technology is not yet suitable for small projects, simply because the transactional costs are way too high and there's no secondary market.

https://air.tl/5cmk2bQaPricelabs has a nice feature where I can set the distance or draw the properies to include for determining the market.  

If you have the cash to complete the transaction as is, I would recommend simply paying the balance.  

We learned that some properties simply require strong market insights and timing rather than major renovations to achieve a solid profit.