My point being, having a reliable team here is a must.Dialing in on what class neighborhood and what kind of property you want is as key as your metrics, especially given that much of our housing stock is ~125 years old --- at least in the city.

What are some key points?

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

You have to walk these properties, understand where the hidden costs are outside of the spreadsheets, and understand the geographic appreciation trend and migration and population as well, none of which will be in the questions you are asking. 

My goal is to build a comprehensive resource that not only answers key questions but also provides clarity on the entire process.The draft is based on my personal experiences working with clients, but I want to ensure it reflects the broader community's insights.

Transparency and value are key—both for you as the owner and your tenants.

If passive income is key, renting the condo or reinvesting in a property portfolio could be solid options.

Rehab costs and ARV (After Repair Value) are key parts of evaluating deals, so it’s great that you’re diving into these concepts early.For rehab costs, creating a rough estimate starts with understanding the scope of work and local pricing for materials and labor. 

If you can, bring a contractor or inspector when you check it out to get a clearer idea of what you’d be dealing with.It sounds like you’re doing your homework, which is key!

That might include things like adding units, converting commercial space to residential, or finding ways to boost income (like adding parking).The key is recognizing opportunities while walking the property, and that takes experience.