I was riding around looking for vacant or run down property.

Sell and reinvest at 20% DP and the new PV is $2M.Option 1:  Sit and wait, and let it build on its ownTime period = 30 yearsPV = $500kEquity = $500kOption 2: Let it ride and let it build as it movesTime period = 10 yearsPV = $2.1MEquity = $500kThe value of "moving" equity is greater than the same face value of "lazy" equity over 1/3 the time period. 

I spend a fair amount of my free time working on the property in one fashion or another, granted by choice, so this is a personal preference and may not be desirable for someone who wants a more hands-off property.Hope this helps some. 

Holding that property for a long time will be a wild ride for sure I wish you luck. 

In a similar fashion, if you can imagine how much landscaping and underground infrastructure is in a golf course as compared to the clubhouse, that provides an indication of why an extremely high percentage of the property's value is allocated to the land improvements.In a syndication, after a property is purchased, a cost segregation study is performed by the syndicator's tax professionals.

In this case, you are taking an expense this year that you will likely have to pay back when you sell down the road, so it's not a free ride as it is often portrayed.   

Why not just ride this lease out and then change the renewal to the LLC?  

@Tim Herman we plan to set up a walk through to check house for damages.Geri, this woman is taking you for a ride!

During the foreclosure crisis the rate adjusted down to 2.85% so we let it ride until rates climbed above 3.5% How did you add value to the deal?

I still like the old fashion way just so you can see how the numbers move a little better, but the calculators on BP are a great tool and you can fly through analyzing deals in minutes a piece.Bryan