Repurposing underutilized structures is more environmentally sustainable than demolition.

Quality insurance is by far the more important component of owning rental properties or running a real estate development company.Where I do recommend the use of LLC's for additional segregation in the self-directed plan space is if the IRA or Solo 401(k) will have a diverse portfolio - some of which creates risk exposure such as real estate and some of which does not, such as notes, stocks, etc. 

Good morning Donna:  I completely agree with the posts that encouraged you to understand the actual costs of the components of you particular rehab.

@Justin Cooke If you can afford to do the subdivision map now, that would probably be the smart move. the reason being, you have no idea what new environmental laws, or other constraints could be put on the property in the future that would make it more expensive to develop.

Sometimes I wrestle with the moral component……do I really want to gouge someone at $600/night on a holiday?

Now in todays compressed market more in the range of 10-13% for the passive component and the active investments more like 25%+.

Same goes for many of the other component's.

Components I still do on each deal to help you consider are: -Research neighborhoods, real estate listings, and market trends Resources I use are the MLS and City data https://www.city-data.com/ -Identifying an undervalued property -Estimate renovation costs and projected sale price -Make a competitive purchase offer and finalize financingPre-Construction Phase (4-8 weeks)I have a core crew that does most of our projects but if you’re newer this takes time to build out in your market.

It has excellent frontage and I have completed environmental studies, geo reports and surveys.

A vital component of success in the commercial real estate market is dedication to continuous education.BiggerPockets is an excellent platform for exchanging personal experiences, meeting like-minded people, and learning from seasoned investors.