@James SorgeIf you live within the live-in-flip for 2 years you may potentially be able to exclude some or all of the gain upon sale.

If you leave the rental unit unoccupied at any time while rent is due and unpaid, we may, at our option, take immediate possession of and exclude you from the rental unit, removing and storing at your expense all property found contained therein.8.

Either exclude and expect a higher return, or assume typical financing to plug in and ensure it still cash flows. 

My recent builds are in the $85-100/ft2, excluding land. 

Your profit estimate must include estimates for vacancy, maintenance, capital expense, PM fees is using a PM, miscellaneous.In low rent areas such as Indianapolis these various cost excluding mortgage payment is ~50% of the rent (look up 50% rule on BP). 

Excluded?

You’re excluded from this if you have revenue and you have revenue of less than 25 million.

These [This] district should be located only where all necessary public utilities are available and where transportation systems are adequate.Uses permitted by right:Aquaculture.Automobile assembling, disassembling, painting, upholstering, repairing, rebuilding, reconditioning, body and fender work, truck repairing or overhauling, tire retreading or battery manufacture.Building materials sales and service yards.Commercial kennels.Contractors equipment and storage yards.Convenience center.Convenience store.Data and computer services centers.Fleet parking.Flex office.General office uses.Hotel.Laboratory, research and testing.Light industrial uses.Light manufacturing uses.Machinery sales and service.Microbrewery in accordance with subsection 28-39(w).Motor vehicle rental.Parking and storage of tractor trailers.Printing, publishing, engraving.Public facilities/utilities but not including propane and heating fuel distribution facilities, generating facilities, substations, switching stations and wastewater treatment facilities which are permitted as a conditional use permit.Public parking lot.Public works excluding wastewater treatment facilities.Railroad sidings.Restaurants without drive-through.School, vocational.Selected indoor recreational enterprises within industrial parks.Storage warehouse.Veterinary clinic.Vocational school.Warehousing, mini-storage.Welding or machine shops (including the use of punch presses not to exceed fifty (50) tons rated capacity).Wholesale business.Conditional use permit:Adult business.Airport, private.Boat sales.Brewery.Clinic, medical and dental.Communication facility.Distillery.Drive-through.Dwelling for watchman or caretaker on-premises.Low intensity commercial retail not otherwise listed.Medium intensity commercial retail not otherwise listed.Microbrewery, in accordance with subsection 28-39(w), with facilities for events such as weddings, parties, and/or events with two hundred (200) or more attendees.Motor vehicle sales.Other light industrial and manufacturing uses not otherwise listed for this district.Place of worship.Public facilities/utilities for propane and heating fuel distribution facilities, generating facilities, substations, switching stations and wastewater treatment facilities (except for the expansion or modification to a wastewater treatment facilities existing prior to October 17, 2006).Recycling facilities.School.School, industrial.Truck stop.Vehicle fuel sales.Here are some questions I have:1.

If the property is in good shape, I doubt it every make sense (excluding some type of basement conversions that are popular in the north).

Capital gains can be deferred and may qualify to be excluded permanently.Both property taxes and mortgage interest deductions are now limited for a primary residence.