Long distance does appeal to me, multifamily is hard to do around here and seems to be a good idea.

I'm sure you have even more codewords to express your desire to raise your kids in a place that requires no work to meet your standards for space, cleanliness, modernity, and aesthetic appeal. 

What would make this property appealing to a land developer/investor? 

It allows for the gc to get 50% up front....appealing to the gc but I'd be concerned about a gc I didn't know getting that much up front....I'd rather smaller amounts as they go along. 

This is very appealing to me because there are a lot of people who want to lease option a house.

Curb appeal is essential to get more prospects interested in living there. 

So, if I were to build a deal for presentation to this "friend", what's the most appealing and safe for him?

It sounds like it would appeal based on location and that there are hotels nearby as well as other towns.

I am debating on whether I replace the carpeting in the property with a wood look laminate flooring to make the condo more appealing to renters when this becomes a rental property. about 650 sf of the 850 sf is 5-10 year old carpet that is in mediocre shape.

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