If market lease rates for our make-believe building are $20/sf NNN and the target cap rate is 7% then the land can arguably be sold for $1,356,000.00$20 x 15,246 SF = $304,920 gross annual income$304,920.00 x 7% cap = $4,356,000.00 value$4,356,000.00 - $3,000,000.00 construction costs = $1,356,000.00Please note this is a GROSSLY over simplified analysis and there are far more costs associated with a new development than the pure building construction costs and land costs but you get the idea. 

Yikes.You can lead a horse to water, but if they won't drink, there's not much more to be done except be there later to help her out when she has to sell the propertiez for a song because deferred maintenance has sucked all the value and rental potental out.

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For instance, purely on a cash-on-cash basis, if a 3-4 unit property will cash flow in the $500 range, then you can "recover" your $7K (+ closing costs) in as little as 14 months.

Howdy @George ClouseFrom a purely numbers prospective the analysis looks good.  

Smoking and drinking go hand in hand.

For a pure buy and hold investment strategy, looking at the numbers (capital value and rental yields), I assume it will be easier to find deals in Saint John as compared to Calgary.

Like if its a 4-20 unit building near Clark Park, rents are nice building is cheap...From a pure numbers stand point.

@Jerome Hranka you need an economic reason other than pure tax avoidance in order to substantiate a strategy.

Looks like gas prices do affect SUV and Truck sales...apparently microeconomics beats sound bites...http://money.cnn.com/2015/12/04/autos/gas-prices-s...Yeah but in the upper segment of the market, as with lambos and ferrari’s Or even 100k plus cars I bet pure cost of “gas,” is very ineleastic and not really factored in at all as a buying decision other than the inconvenience oh having to fill up.In the lower to mid tiers of vehicles the cost of gas is probably a big deal because there is more of a budget to adhere to.