Portfolio loans are more expensive and higher risk with rate adjusts amd/or calls and balloons usually. 

At the end of the day, the lenders want the money that was agreed upon, regardless of how much profit you individually make so understanding how to adjust the numbers need be to make sure they get their return, while making sure you maximize the amount you earn is the key. 

When you call tell them what you are looking for after you have clear buying criteria and see if that market will meet your criteria or you might need to adjust your expectations (ie your buying criteria). 

There would be no depreciation recapture, because the building is sold for $75k which is equal to its current ("adjusted") tax basis.This is a rare scenario, but it does illustrate that land appreciation can have interesting tax consequences.

We had what we think was a ghost or squatter who kept opening windows after they were closed, turn up and down the thermostat and put socks on the ceiling fan blades.

@Bryce Stclair I have learned to adjust my rental expectations with BAH in a military community.

Regarding your property tax question: If you buy a distressed property in Florida, the county tax assessor will "assume" that you are going to fix up, and the year after you purchase it, your tax assessment will automatically be adjusted to be the same as the surrounding (similar) homes.

Once it is stabilized you an can restructure the debt.With respect to Midwest or Florida, I think it would be wise to assess the risk level of both and then adjust the rate of return based upon the risk/reward. 

@Shawn Ackerman:Purchase price must be equal to or greater than the sale property being sold.All profits must be reinvested into the new property to defer capital gains taxes.Profit will be determined on an adjusted-cost basis after taking into account the depreciation that has been already claimed.BONUS (and most important): Get yourself a great Qualified Intermediary (QI).

Because each vacant property could have differences that are difficult to adjust for, I view vacant sale comps as a secondary check on the value derived from the method I first described.