We have put a lot of time and money into improving it.  

I'm considering raising rents again this summer once all those improvements are done.I figured this was a 2-3 year project to get the building stablized and that's about what it's going to end up being. 

.$625 might be pretty cheap for your area, which could mean you have opportunity to improve / raise rent, but it also might mean you are dealing with a tenant population that is a bit tougher to manage.

Hi Scott and congrats on your life improvement. 

I will likely be making a cash offer of $43K, estimate to put approx $20k of improvements into the property, and inevitably would seek a cash out refi. 

If you never raise rents on an existing tenant in a rising market, you may end up way under market and not keeping up with increases in insurance, taxes, planning for future capital improvements and other expenses.Small increases when the market is rising are a very good way to keep a good tenant as they won't find anything better when they look around as long as you keep it on the low end of current market.    

I am doing this purely to improve the look of the house.  

@Mike WoodLot is $12600 - lots are cheaper here since the developer does not have to pay for the infrastructure improvements. out of pocket.

With that said, they are trying to improve the area.

A local agent he contacted said they would recommend listing at $11kAn improved property in the area recently sold for $95k (1/1, 702 SF):  http://www.zillow.com/homes/for_sale/Costilla-Coun...I'm such a newbie working on investing here in FL and have never worked a deal in raw land, so I have no idea how to steer him in the right direction.