@Rigo V. I

that's what I was thinking but could not eloquently elaborate.. when you live in CA  buying in a state with no income tax does not give you any benefit vis a vi not paying tax.. and in fact a state like Texas were the property tax's are uber high..

Thaks @Jeff V. I

@Edward Howell, V I just have some encouragement.I had squatters in a house once. 

The same will apply to ROI but the math is a little messer so I will just do cash flow:Cash Flow = (Income - DebtService - ManagementFee - Insurance - RETax - PeriodicFees) x (1 - StateIncomeTax)Suppose I developed a universal constant for maintenance, which I will call M and a universal vacancy constant I will call V. I

@Ernie V. I

@Lisa V. , I took my course at VanEd.com.

You want to talk to your CPA first and foremost you don't want to get in a situation were your deemed a dealer and lose your cap gain tax advantages.that said a take down schedule like this is common in the industry.. although CA usually a million dollar property is not a lot.. vis a vi development ground.. and builder developers there usually stroke a check if needed.I suspect though if your going to sell it in phases.the land would be split into 3 phases and you deed out each phase as he pays if off.. but not individual lots that were your CPA can advise you on dealer status.its common though in these scnerios to have accerlated paymentso you have  3 phases  333k each... you sell first phase for  400k.. second phase for 400k last phase for 200k.. this way you get a premium if he fails to buy the rest of the dirtalso in your contract make SURE you demand that all work product engineering soils geo tech that type of stuff is once paid for your property as well.usually in vanilla real estate transaction on the west coast I don't recommend or see the need for a lawyer but in this case I would find a good real estate lawyer tell him these basic terms and things you need then let him prepare the contract.. hope that helps.. and assuming the dirt is in CA.. of course.

Originally posted by @Allison V.:I

Thanks for the response @Jeff V.  I