I’ve heard of it being used on main sewer lines.

This is one of the main draws of commercial real estate investing, and some high net worth individuals purposely invest in large deals that accelerate depreciation so that they can shelter all their income.

At a 10% cap rate, value would be $150k BUT that is a full leased park.As-is value is $15,300*50%  (Gross*expense & vacancy factor) = $7650  at a 10% cap rate, total value is ~$76k.   

To many factors so you really need to look at comparable properties. 

Deal analysis is a great first step into note investing.I should mention I invest in 2nds, but typically the value of the property drives a lot of factors for valuing a 1st mortgage.

It depends on a lot of factors like how your unit is priced vs others nearby and obviously where in Lawrence it's located.

Any particular factors to look out for?

Hi Megan,Yes, that is pretty much my deciding factor for keeping it as a rental or flipping the house. 

@Jake DeBoer your main issue here is just the LLC part. 

It looks like the main thing is that your parents would have to hold the property for a minimum of two years in order to convince the IRS you weren't engaging in cost swapping.