In Florida you are required to keep the tenants security deposit in a separate, non interest bearing account.

Thinking about it, I can bear No. 3 scenario and I do think there may be periods when in this can happen.

I understand forecasters predict an uptick in polar bears in the market, so rents should stabilize. 

I have half the deal. the other half is a group of roth investors all in their 30s prime earning years.. we pay 120k a year in option fee which is 100% credited towards the 5.5 its a long term play we will be in it 20 years or more. before it bears fruit.. but at todays value the property would command about 300 to 400k an acre.. so value when it ripes should exceed 40 million just selling it to Lennar or horton or Lyons homes.. someone that big will be the player.. the massive gain for all these guys in the deal will be tax free to them TRULY tax free.. and each of them only pays less than 10k a year.. so it should be at least a 10X deal with no income tax.. i like these for IRAs  .no cash calls no tenants.. well we lease the land to a farmer.. but that just brings in 25k .. anyway as you get squared away this is something to think about for long term strategies.. there are far more ways to invest than simply trying to buy rentals..

Also bear in  mind that the water table is farther down than other parts of the country.

In many areas, the soil in Colorado is heavy clay.

This is a pretty simple situation- you can charge whatever the market will bear, within reason.

If you want to really get the details, here is the place to start.On expansive soil, there is some in Las Vegas but it is in a relatively small area.

Papa Bear’s bed was too hard, Mama Bear’s bed was too soft, but Baby Bear’s bed was just right.

Be sure and deposit security deposit funds into a separate account (non-interest bearing).