I was merely using the above example as a way to illustrate that builders change price points based external factors.

This is something I plan to do myself when I start renting, plus including an overlay showing from which angle each listing photo was taken.Also one inside one of the kitchen cabinets to help illustrate what size the furnace filter is, what type of battery the garage door open, thermostat, and whatever else takes, where the water shut off valves are, etc.

You can take $50k and buy a $200k property that you own 100% or use $50k, raise $950k in private equity and buy a $5mm property that you own 33.5% (70/30 investor/sponsor split for illustration purposes...there are many structures).

Another consideration with the 10 acre example, imagine it being a perfect sqaure on the map for illustration purposes.

Although to be fair its not like podcasts, products, books, gurus, etc out there paint a clear illustration of what REI failure looks like. 

While extreme and a worst case scenario of Turnkey / OOS investing,  I think it illustrates what can go wrong with any investment that someone leaves fully in the hands of others who would determine your failure or success.   

I'm just using that to illustrate the market up here.

The following example illustrates the principles of this paragraph (c)(4)(i):Example.

A quick glance at housing affordability in AustinMedian Household Income App (Forbes): $73,493 ($6,124/mos)Cost of Living (Forbes): 15% above nat'l avgMedian Home Cost (SFR-ABOR Stats): $302,250Assume 5% Down Payment Conventional Loan- 30 year amortization- $15,112.50 down pmt + any closing costs• Percentage of residents with less than $1,000 saved: 56%• https://www.gobankingrates.com/…/…/americans-savings-state/…- $287,137.50 amt financed- 4.375% interest rateHow the payment looks:PI= $1,433 mosIns= $105 mosTaxes= $458.33 mos (Assume $5,500/yr)HOA= $25 mos$2,021.3/mos PITIDTI’sHousing ratio= app 33% @ median income ($2021/$6124)FHA should be at 31% or less with Conv/VA/FHA being around the same although all have exceptions in placeTotal DTIThese hover between high 30%’s to manually underwritten total DTI’s in the 50’s or higher depending on the programs@ 45% Total DTI Ratio and assuming the above PITI pmt that gives a borrower approximately $734 per month in all other creditor debt (cars/cc/personal loans/etc)These numbers are not perfect but are rather a quick illustration of current housing affordability in Austin for Retail Buyers.Summary: Housing is becoming less and less affordable in the COA for end retail buyersAssuming increases in property taxes/insurance/interest rates on the horizon how does this affect us as investors?

To illustrate this better, lets say the house would be worth 170k IF the foundation had no issues.