Much of the cost of renovating the unit will be borne by me, and a fair amount will be now covered by insurance; the carpets have burn marks, the walls have got large brown areas, doors have been kicked in, there will be lost rent due to re-hab.

If only for the purpose of negotiating and convincing others to buy based on your speculations of what you can get once built out. i.e. if lots are small and set backs are large then it might only limit those lots to the SFR or really small duplex instead of a 4-plex. 

I'm interested because there appears to be a sense of community, and even the more dense blocks with lots of large apartment buildings seem well taken care of, also proximity to the expressway and Metra. 

@Joe Lambert,If your net passive loss is too large for you right now, don't stop taking a depreciation deduciton, but instead,refuse to claim active participation in your rentals. 

To get an initial feel for a market I recommend looking at:Population growthAverage Income growthProperty value growthRatio of property owners to rentersDemographicsLarge economic drivers (Hospitals, Army bases, Universities, other large employers)Street view on Google mapsYou can find all of this information with a Google search. 

This tends to be a little more defined in the large commercial world.

Hello Gene, also a newbie here but it occurs to me that you could find a lender that understands your goal and may agree to a large down payment with your father as co-signer. 

Hey Guys I have a creative deal I put together and the financing for it is going to have to be just as creative.I am buying two properties next door to each other and subdividing portions of the very large backyards to create a 3rd lot to sell for the profit (see pic.)Both home are in good condition and upgraded (minimal oppotunity to add value.)

Some people (like my local market) but at those ratios but they do it with major rehabs or large downpaymenrs 

I’m considering as an alternative to buy a large single family and rent per room.