If we experience severe inflation, you will be able to pass variable costs to the NNN tenant (reducing cash flow risk) and you will own an asset that costs more to re-build. 

It's unfinished with an abandoned bathroom that will require a full rebuild.

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

My market is a tourist location and has a median home sale price of $675KListing I’m analyzing:SFH 2/1 1044 sq ft build in 1905List price $590000KARV Seller says $789K but I will list comps belowRehab per seller $95KRents in area are around $3K/moClose Downtown so could possibly AirBnBThe seller is offering seller financing at $40K down and carry the balance at 10% interest only for 18 months.The inspection-My major concern*-Foundation cracking at entry stairway-Detached garage needs complete tear down and rebuild-Foundation cracking/moving in walls in crawlspace.

So between the 2 of them there are 8 accounts in collections, they said they’re “trying to rebuild their credit” but the most recent late payment on a debt was THIS MONTH!  

There are 3 ways to value - The Cost Approach (Basically the cost to rebuild) The Sales Comparison (Comps) and the Income Approach (Valuing based on the income) Hope this is helpful.

Due only to this one provision, lenders won't lend as their collateral in rebuilding is compromised.

Proper brick storage units with secure locks could provide shelter for crops, vehicles, furniture, machinery and anything else that needs to be kept while rebuilding happens.

Home would need all of the equity it would have if it was in good shape to rebuild and fix it in its current state for sale later on.Mortgage (owed) = $66kComp = $130k to $140kMy general contractor , an honest man, asked the fiance if he wanted us to pay off the mortgage with him assuming that was all we were offering his fiance).

His statement would probably be more true if you demo and rebuild an entire house and you're paying bust-out retail for labor.Just remember what I tell my kids - all generalizations are wrong.#3.