I disagree, however, with the common notion that appreciation is purely speculative.

IE the market is too speculative to allow 20% down and positive cash flow. but the upsides are real or should be.. its a different investor mind set..

Speculation is too difficult with land and have no interest in my investors to play the speculation game.

I have located a possible deal that could be the "diamond in the ruff" scenario but it is partially based on speculation.

And its really tough to find cash flowing deals here now vs. what you could find five years ago.I think Denver may be shifting to more of a speculative market like the west coast.

That said, after talking to some banks it sounds like this is possible for me despite its speculative nature, but with terms in the neighborhood of 20-25% down and 15 year fixed maybe a 5 year 20 amortization.

I could speculate and go for the larger building (I'd have to have an equity partner to cover about 45% of the purchase), but there is a lot of upside potential (zoned nicely, up and coming area...).I'm just trying to understand the decision making people go down.a) I could probably make more money reinvesting in my existing business or starting another.b) I don't want to be a landlord at all, hate that thoughtc) If I do sell my company, I'd be interested in selling a building I own along with it, or at least signing a long term lease with the new business owner--I am leaning towards seeing if I can renegotiate my lease at the existing place or find the right 12,000SF building in town to swoop in on with cash in hand....Choices choices!

Contacting either one will have people wanting to check it out if the numbers are correct.Make sure you have it under some sort of contract before you do any of this.Also, land is a little more speculative than buying a building, so make sure you come up with several exit strategies.

Price point is high but the speculation strategy is proven and as long as you have a beautiful ocean view, easy beach access, great decor, and good reviews... 

That would make your cash flow something like $144 a month.A deal like that might be OK as a speculative play, hoping for future rent increases or appreciation.