Advertising it for rent and holding it without any takers could potentially cover you from that end, however unless you actually have the place rented out, you cannot deduct any expenses incurred.Also, when you sell a rental property at a loss, you are able to take section 1231 losses which offset any ordinary income from whatever source derived.

If you don't do that, you are doing them a huge favor by taking all that risk.You didn't mention how financing was working on it or any of how your derived the cash on cash yield.

The answer to your question is the valuation for commercial properties derived at using the income approach. 

("Play stupid games, win stupid prizes" is a military saying derived from, for example, popping a drug test a month from an honorable discharge after 3 years and 11 months of doing what you're supposed to do)

For example, if the NOI in a 7 cap area is 200,000 its value that I derive from my underwriting would be 2.86 mil but compared to a 7 cap area where the appraiser drops the rents and now the NOI is around 175,000 then the value would be 2.5 mil.

Selling premium in the derivatives market can be a consistent income generating strategy for those with a low risk appetite.

You take the gross income annually minus all of your expenses taxes insurance maintenance utilities etc. to derive at the net operating income. 

If Rental Income is being derived from the Property being vacated by the Borrower, the Borrower must be relocating to an area more than 100 miles from the Borrower’s current Principal Residence.

Hello @Cecile Poyet, There are dozens of companies that supply/sell data that tell you sqft and avg home sell price where you could derive your ppsqft number.

They have to stick to stocks, bonds, derivatives, etc.