Use this to your advantage.

Need those to help offset the road cost.Good luck with project.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

This is my first go at pet screening.

@Marjorie PattonI ran into this issue.

Sell this one and keep the cash on hand (after taxes (Ouch!))

Quote from @Jonathan Greene: Think of it this way.

I have been taught to back into the price on what it's worth to pay.I'm in Pierce County, WA.For me, if I have an opportunity at 40 townhome lots I am figuring probably 250-300k in all the soft costs and city/county review fees.

When I search properties mainly in Punta Cana I always run into sites where condos are in development and have about 1 - 2 years till completion.

However, that depends on the time/energy/skills he puts into it.I