For example, while the HVAC system may have a couple more years left on it, if a buyer is trying to decide between your house and a competitor, and the major difference is that the competitor's house has no deferred maintenance and yours does, he'll likely go with your competitor's house.On the other hand, if your hand is much nicer than any competing house in the neighborhood at the same price (and is also priced well), you may not have to fixed stuff like the HVAC system to get a sale.In other words, without having big picture about what you're trying to do with the house and what the competition looks like, it's impossible to recommend whether you should replace old (but working) components of the property.

They still control all the components (the deeds) that would pose any risk to their title insurance.This seems to me to be an issue of fear and not fact.

You will need to learn all of these components of a development deal: land acquisition, site selection and sourcing, zoning and entitlements, architectural design management, deal underwriting, financing, construction, leasing, property management, and sale or asset management. 

That will tell you how many units you can build on the site.Next, do a full underwriting or proforma analysis of the project, of which the build costs, are one component in the model.

@Mark Poulton - I have to admit their current track record is grim (crash with a different school-buddy each night); however (at the expense of preaching 'too big to fail'), they are now the largest component of the American workforce (Gen X parents - what were you thinking with all those kids!?!?).

Bridgeport.. but no resi component to that one.thank you

It was a big expense.I'd also be curious to see if you'll need to fire rate the existing structure independently of the housing components.

You are the driving component of the real estate business.

Property taxes are only one component of all expenses, so the question is whether the sixteen percent rent increase covers your total increase in expenses plus additional risk and return.If your expenses (and reserves are an expense) are greater than rents (which are set by the market), then sell or go bankrupt.

Worker's Comp on demo guys is high because of the potential injury, so figure with all labor costs they're at $40 hr.....