In this approach, the taxpayer calculated that the cost to construct a new building (say, $300 per square foot at 2,000 square feet, totaling $600,000) should be allocated to building and the remaining balance of the acquisition should be allocated to land.Rule of thumb method: Some taxpayers use a predetermined percentage (such as 80/20 percent, 70/30 percent, etc.) for improvements and land.

@Max Bellino You seem eager to learn and I hope you accept this as constructive criticism.

So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.What if I’m a seller?

I am interested in GC’ing new construction homes and selling rather than fix and flipping and wanted to see if any of you had processes you were willing to share.

And the only ones willing to work construction these days are mostly immigrants.

But the smaller cabins are doing surprisingly well on rents and, given sales are based on rents, not surprisingly they are selling for good prices too.But new construction out here has come to a standstill. 

Even though they could be walking distance apart.There is a lot of construction happening near the area that Stuart mentioned and that is certainly affecting values and rental metrics. 

I was heavily involved in the renovation and am relatively familiar with the construction side.Our plan is to hold this property for long term and then wait for a couple of years to add more to the portfolio. 

There are other considerations that may still make it impossible to permit the construction of the building even  if the by-right use permit is obtained and its important to have an architect closely examine how the proposed floor plans will layout to confirm egress &  bedroom windows + localized zoning overlays along with a  number of other factors.

You would have more options as far as construction loans for sure (If you are needing to get a loan).