You get a higher price for the more income it produces.

Hi..i came across a property, and i appreciate for any input you may haveInfo:--------------------------------------------the sellers Real estate agent said..2 family homein its current situation the house worths $308kthe seller is asking $250Kthe house has tenants producing $3800/ monthComps:The houses rehabed afew blocks down  sells around sqft/price $207-$262  i talked with another real estate agent he said 3 families run around $400kEven though this one is not a higher end, it is being asked at $262/sqft   Questions:Does this deal makes sense?

Historically San Diego is almost a sure thing at producing outstanding ROI. 

It's easy to see the cash produced by the asset sale that then goes into your 1031 account and waits.  

Certainly doable, but be ready to grapple with the competition.If your goal is simply having an income-producing part of the property, another option is to look for a home with a basement apartment or carriage house.

I don’t pay the seller for the work I am going to do to get those pads producing.

A lot of newer investors try to use cap rates, which value a property based on the income it produces, as a way to value a property.

Last year for our FL properties VRBO produced 55% of our bookings, Airbnb produced 15% (increasing each year) and the rest was produced by Homeaway (9%), TripAdvisor (7%) and repeat guests (14%).Last year for our CO property VRBO produced 64% of our bookings, Airbnb produced 2% and the rest was produced by Homeaway (11%) and repeat guests (23%).I find the differences between the two locations interesting. 

From Biz findings "For losses of trade or business property, or property used to produce rentals or royalties, once you've calculated the amount of your loss and subtracted the amount of your reimbursement, the remainder is your deductible loss (or gain)."

In one of ruling  IRS stated that The participants must reserve the right separately to take the property or dispose of their shares but may not jointly sell the property produced.