But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

If you were and lose the value of the rental, then subtract the rental amount from the total price to arrive at the reduced value to you.Are you asking HOW to negotiate a lower price based on this uncovered information concerning the property condition?  

But reduce your capital account.  

When the economy tanks and the sponsors compensation is drastically reduced, the sponsor makes the decision to maintain there lifestyle at the investor’s expense. 

So you have to refinance to take out cash after you have exhausted your line of credit and reduce rate and go back to one loan.

This might offer more security but also could complicate tax reporting.Taxation of Y as an S Corp:If Y is profitable, electing S Corp status could reduce self-employment taxes, but it also comes with more stringent IRS rules.

Michael is correct, you would want to ensure that a cost segregation study / bonus depreciation would actually reduce your tax burden before you get a cost seg done.  

If you have family living in there, I'm guessing they are paying reduced rent.

The purchase of the unit is going to be sooner a few months, you could wait to rehab both at the same time which could potentially help reduce the costs of the rehab. 

Consider paying down the high-interest debt strategically if it outweighs the potential returns from new investments.Additionally, understanding Real Estate Professional Status (REPS) and Short-Term Rental (STR) tax savings can significantly reduce your tax bill while building your portfolio, enhancing your overall financial strategy.