@Ming Huang Based on the numbers you've shared, I would advise against the deal, unless you can negotiate the purchase price down and/or rent it for at least $1,150.

Slowly work your way up to bigger purchase price and rehab budgets.

Purchase price: $850,000 Cash invested: $500,000 Sale price: $2,250,000 Purchased , knocked down, built new from ground up What made you interested in investing in this type of deal?

Of course, every owner's situation is unique and factors like the legal entity involved, purchase date, adequate passive income that can be offset with the cost segregation study, etc., will need to be considered.

Have you guys ever purchased a property without physically seeing it?

You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.

Current value of paid off property is roughly 350k , looking to borrow 75k-100k down payment to  purchase a 275k commercial property.

Purchased a little too high at the buy (I knew it at the time too), does a little better than breaking even on cashflow, and took too long to rehab.

However, a multifamily purchase could work quite nicely. 

Purchase price: $850,000 Cash invested: $500,000 Sale price: $2,250,000 Purchased , knocked down, built new from ground up What made you interested in investing in this type of deal?