Like someone else said better to buy land that is already suited for use. 

Any good area so you recommend for buying a rental property ? 

Hello All, I have a client asking if they could buy a portfolio of 5 properties (at a "packaged deal" rate) and sell off two of them to recoup some of the initial down money needed to buy them. 

What are some of the best areas or even zip codes that would be good to buy a rehab property?

I have opportunity to buy a small portfolio of performing commercial notes with LTV's less than 50%.  

I'm looking to solve for the followingOffer Price $xxx,xxx (To be solved for) Asking Price $ 438,75035% Above Historical Value xx% (35%)Historical Value $ 325,000 (To be solved for) Rent $ xx,xxx (To be solved for)Rent Actual .005 of ARVOffer Purchase = $ xxx,xxx (To be solved for)Amount Down 20%Amount Down $ xxx,xxx (To be solved for)Closing Costs $ 3,500 Interest Rate 7%Prop Taxes Yr Rate 0.005 (variable by market)Insurance Yr Rate 0.0064 (variable by market)Inflation 2.9%Appreciation 6.4%Cap Ex 10%Repairs 10%Vacancy 8.33%Prop Manager 10%Yearly Return 5%How does one calculate at what price "off of asking", to buy if: we assume in 5 years prices will be back to historical norm If a property is currently priced at 35% above historical value (which is what an economist is saying is the current situation on the MLS)Purchase Price with 20% down, and a 7% int rate, Inflation is at 2.9% and appreciation is at 6.4%, with 5% return on a yearly basisThe following links suggest some costs:https://www.biggerpockets.com/forums/52/topics/588344-how-much-do-you-budget-for-capex-and-repairs-on-single-familyI have this figured out for buying SubTo, and for Wraps, But I don't have experience with using a bank to buy properties and figuring costs. since I never use them.

Investment Info:Single-family residence buy & hold investment.

I gave her 30k in 2024 and that was to buy a new car to replace her 15 year old Accord (which just keeps on running). 

Originally from Pennsylvania, retired from the Navy in 2018, moved to Boise, ID (where I am now), and decided I want to buy my first investment property this year.

Quote from @Guillermo P Manso: Quote from @Bruce Woodruff: I would advise against buying a condo to do STR.