Reconstruction cost estimated by insurance cie $600 000Can I get insurance for only $160 000 or $200 000 instead of $600 000?

The replacement cost is determined by the cost to reconstruct and not the market value.

You will want to go toward reconstructing those records.Also as Charles Perkins said you must take into consideration the date the property was "placed in service" not the date actually rented.

"Reconstruction Cost" relates to the cost to re-build...keep in mind when determining this cost, the value of the lot/land is already there...My 2 cents, at least!

You said you are very mechanically inclined and you said you have lots of RE/Construction connections.

I recall the investigators laying into the concrete supplier, reconstructing the mixture and running tests on samples, that kind of stuck with me, seems the engineering firm did take a hit on that.Wade, do you know of any material related issues that would make an 80s project undesirable?

If you plan on buying/flipping, is it recommended to form a RE construction LLC?

Should I proceed to do research on the property and try and find out who owns the property and send them a "yellow letter" or should I not be bothered with it at all because it may need total reconstruction.

The remaining expenses carryover to the future as a Passive Activity Loss (PAL).Real Estate ProfessionalTo be a real estate professional, an individual must spend the majority of his or her time in real property businesses:• Development or redevelopment• Construction or reconstruction• Acquisition or conversion• Rental• Management or operation• Leasing• BrokerageThe taxpayer must meet each of the following two time requirements:• More than 50 percent of his/her time working in real property businesses; AND,• More than 750 hours of service during the year.One spouse alone must meet both tests.

"Reconstruction Cost" is not Replacement Cost.