The problem with general price inflation greater than 10% no rational entity would commit money to loan when economic conditions rendered his transaction a certain loss.  

-Small property about 1200 sq ft or so (as I mentioned rough condition and would likely be torn down)-Listed at 300k-Lot area 20,000 sf ftHere's where it gets interesting, and I need the help to figure out what an offer would look like.

I do believe that networking is the way to go and I go to A LOT of networking events where I meet locals, discuss RE (and other stuff) , and get insights on local market conditions.

I had a furnace that was in good condition but was older and the inspector stated that the heat exchanger could be cracked.  

Is the house in good condition?

If those really are comps for your property, in its current condition, then you're getting a great deal.You mentioned the property needs repairs.

My down payment of 5% will be $3,000This leaves $5,000 left over for repair costs, and by reading up on what the FHA guidelines are and what they require for a house to Pass and be approved for " liveable " condition, I will almost certainly need more than $5,000 to do all of the repairs .Can someone shed some light please, as to how strict the FHA guidelines are , and what they will require , that Has to be done .

The "just market value" of their land is then listed at $250K (the county defines JMV as "The price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.")I am very interested in learning by participating in this deal but I don't know whether i am getting screwed through 1) him assessing my basis too low by valuing it at 212 instead of 250k and 2) the terms of the overall deal.I am leaning towards doing the JV since there are other places where I can learn about rehabbing and renting, or flipping, but this property offers a great opportunity to participate in a development with a high quality experienced guy who is very well connected. 

.- Properties are in good condition, just a little touch to increase their selling price.Questions ?  

Both are in totally unused condition!