Quickly establish WRITTEN policies and procedures to ensure consistent service for every client or customer.

How high you can go up on such a small size parcel can make a big difference in returns.If the buildings are old the procedure to tear them down could get expensive.Also tenants on current leases the disruption to their businesses would likely need to do in stages more (start and stopping) with development and meanwhile labor and material costs can go up.

@Ron Fletcher I work with investors in Chicago that invest in properties this way, but I should preface that our procedures are governed by Illinois laws and Chicago laws so youf area may be different and you should consult with local counsel.

Scary as hell because I also work full time.It was overwhelming at first but I broke it down day by day and start building my procedures and questions to ask.

The more you learn about closing costs and procedures, the more time and money you will save in the long run. 

The "change of accounting method" procedure does not apply when you only missed 1 year of depreciation.6.

Barbara,It's important in a situation like this to CYA and follow the right procedure. 

Whatever money has not been spent on replacement properties at that time comes back to you because there is no longer the opportunity to complete an exchange.To emphasize the importance of this concept to a QI you must understand that the way we treat one client procedurally is how the IRS would perceive we treat all clients. 

The bank either hasn't yet realized that someone else already owns the property or they're going through the foreclosure process for a procedural reason.

Throwing out tenants property without following proper procedures can come back to bite you when the tenant claims there was a priceless diamond necklace in the end table you carelessly threw away.