@Shabar Marshall It's worth noting that there are HOAs with single family residential communities too.  

She and my step father bought an undeveloped land (Roosevelt California) - residential zone back in 1995-1996 I think from a realty broker that time.

You could also search for Two - 3 or 4 plex properties on separate tax lots and do each transaction as residential.

As you mentioned, you can depreciate the improvement value over 27.5 years for residential property.So, to calculate the depreciation recapture after 5 years, you can use the following formula:Depreciation Recapture = (Original Improvement Value / Useful Life) x Accumulated Depreciation x Time HeldIn your example, it would be:Depreciation Recapture = ($200,000 / 27.5) x (5 years) = $36,364.36So, after 5 years, your accumulated depreciation is approximately $36,364.36.Now, when you sell the house for $400,000, the profit you'll have to consider for tax purposes would be:Profit = Selling Price - Adjusted BasisThe adjusted basis is the original purchase price minus the accumulated depreciation.

That's like buying a lot to build a gas station, but it's zoned residential currently...but maybe you can get a permit. 

However, I run a real estate Meetup in Santa Fe, and my partner is a broker; I also know several residential agents who work with investors. 

My name is Katelyn and I'm a real estate agent working in Knoxville, Tennessee.While I focus on residential sales and luxury properties, I'm also passionate about the investor side of real estate.

Lots of deeply discounted residential real-estate partnerships now for sale.

If it is a residential property, agents typically use the TREC one to four residential contract.

I'm anti fragile.