The combination of large mortgage payment and reduced rental income typically results in neutral or negative Cash Flow for the first year you own the property.  

Then create an LLC or S Corp as a "Land Acquisition company".I am buying this land basically as a way to reduce my taxes because then I would be able to write off stuff that I normally wouldn't be able to write off.Thoughts? 

If they purchase, the option fee amount paid will be reduced from the purchase price to lower the purchase price on the sales agreement, after they exercise their option to purchase.* The property is not sold and title is not transferred until the tenant exercises the option to buy.

Passive activity loss rules prevent investors from using losses incurred from income-producing activities in which they are not materially involved.Being materially involved with earned or ordinary income-producing activities means the income is active income and may not be reduced by passive losses.

You will significantly reduce the size of your buyer pool if you don't.  

If they purchase, the option fee amount paid will be reduced from the purchase price to lower the purchase price on the sales agreement, after they exercise their option to purchase.* The property is not sold and title is not transferred until the tenant exercises the option to buy.

Literally you can hand someone a deal with the complete roadmap, and many will still not take action.Coming from contribution is so much more valuable vs. staying silent to reduce your perceived risk of losing business.Does that mean you should answer every single person's basic questions?

But I am hustling for another buyer in the meantime.But my point is, I was able to reduce the offer price because we are direct to the seller.

If so, does the basis on my property stay this same or does it need to be reduced by a certain amount?

I offered suggestions for reducing expenses and saving money on her fixed income.