Think compensating factors with derogatory information obtained, the source of it, weigh the validity of the matter. :)

You're spot on with that approach, but determining the outcome (accurately factoring in the profit potential and required time) clearly involves some significant experience - not the kind of thing I should attempt to plan for.

So, factor in additional holding time for the sell, because your pool of buyers is smaller.  

Barbara G.Right, many factors to consider...

Thanks for the insight as I am factoring the risks as well.

@Celina Sherbrooke there are a lot of factors that need to be explored when it comes to selling raw land.  

Perhaps investors are willing to buy with lower cap rates, perhaps investors are willing to speculate more, perhaps there are rent control rules/laws that need to be factored into the analysis, etc. 

If those 40-55k comps are "after repair" comps, then you need to factor in the cost of repairs.2) What the current owner bought it for in 2005 is largely immaterial.

Or if an end buyer is putting up the money will they just cash me out on the front end ( most likely scenario if you have a cash buyer)  yes or no.Just go through this list and then ask him or her the pro's and con's of each and what your risk factors are..  

Are you factoring in maintenance, capx and vacancy in your cash flow?