It seems like that size purchase wouldn't make it worth so would love to hear more on that.I did a 1031 exchange here in Chicago, where we built a ground up single family, but then exchanged into a 19 unit building.

The once-iconic retailer Kmart is closing its final full-size mainland store in Bridgehampton, New York, on October 20th.

I don't think Sacramento is on the table for me after looking at the numbers. 

And it's written under the pseudonym of Sean Cook by Paul Kaseburg.Paul’s sat on both sides of the table on over $2 billion of real estate deals.

Does anybody have any solutions that may help bridge this gap for folks that may be coming to the table with say 20% - 30%?  

Quote from @George Goldstein: Quote from @Theresa Harris: Even if you did buy a $1M house for $500K, your property taxes are based on assessed values and the city uses the size of the home and comparable homes in the area to determine that value and in turn your property taxes. 

They will help you ensure you don’t accidentally leave money on the table by helping you study your competition and by raising or lowering your rates so you can compete better.

@Benjamin Stacey you didn't mention your family size, but if just the two of you, what would happen with your numbers if you finished the basement and lived down there, while renting the upstairs?

There’s also future development potential given the size of the land and zoning (allows for medium density development up to 8 units per property).What would be the best way to structure financing for a deal like this?

I was able to see this with a future depreciation table and compare against the non CS expectations.I'm not sure about recapture, presumably yes this is not ideal and probably exacerbates the current recapture issue.