However, land costs are crazy, most lots are going for no less than $400k.

For example, when I get up to “estimating rehab costs”, for me it’s like it’s impossible to know how to estimate rehabbing costs without reading an entire book on it.

So it essentially increases the cost to the buyers by 2%? 

land has very little value if existing homes are selling for less than New build replacement costs. which is pretty much half of the US.. and especially in the mid west and rust belt areas.. building lots have value in dense urban areas where new infill is going on in a big way..

My state does not have a limit on rent increases. 

What would you say the cost would be to setup and maintain this type of structure?

However, where utilities are combined there is no easy way to estimate the cost because there are too many factors at play.

One cost to consider is downtime.

I don’t see how you wouldn’t sell for $1M (let’s say net after all selling costs, because that’s how you have to repurchase.

Account ClosedOut-of-state investing offers market diversification, lower entry costs, and economic opportunities, but also presents management challenges and increased costs.