It might be best to sit down with them and have an overall plan or idea as to what you could see over the next 5,10,15 years etc as far as deductions go, combined with your clarification on expenses and rental income.

My "projected" cashflow at the moment is $500+ so it's insane to let the property sit unproductive any longer!

She keeps 75% of that, and she paid around $510K for both of them, so she's sitting pretty darn good! 

It's lunchtime, and 83-year-old Michel Bordagary sits alone at the center of the long “Boarder's Table” at Centro Basco in Chino, California.

That said it's also very complicated if you don't have complete control.might need to see what the city planning has to say about what you can build and getting authorization for whatever you have planned be it a lot to sell or a house.its my experience that lots sit for a very long time.

It sits next to an orange grove, so no rear neighbors and it's close to a nature preserve so it's very quiet.

“Everything you’ve ever wanted is sitting on the other side of fear.” - George Addair

I don’t want to buy a property just to buy it, but also I don’t want my money to just sit in a bank account not being active.  

We would have occupied the other and been perfectly capable of making the mortgage if it were to sit vacant. 

No reason to let that much equity just sit around.