A few definitions to know in this domain of land development:Raw or unfinished lot cost = raw land prices divided by number of lots derived from land planning actions Finish lot cost = the cost of the land, development impact fees related to land, and common infrastructure (i.e. streets, sidewalks, parks, schools, etc)Residual land value (RLV) = analysis of home prices less all cost to complete and what remains is what a builder can pay for land.

If you choose to  replace with vinyl that costs you less than the remaining value of the carpet, you're still entitled to the carpet cost.

My home insurance write an estimate for the water damage.Replacement Cost Vale                                            $19,000Less Depreciation                                                       (2,000)   ---------Actual Cash Value                                                      $17,000Less Deductible                                                    (1,000)Less Prior Payments                                                     (8,500)                                                                                     -----------Net Claim Remaining                                            $7,500Total Recoverable Depreciation                                     $2,000Net Claim Remaining if Depreciation is Recovered        $9,500I have three questions.1) Does it mean the insurer still owes $9,500?

No cash up front to seller, lease option with purchase price subject to the remaining balance after deducting mortgage payments made up to that point.  

Looks like you're on M2M so the tenant would have the option to vacate easily - - OR to remain and let the new owner decide.I would opt for the repairs too and agree that showing with tenant in residence can be a real problem, as even their fixtures can clutter the space and give the appearance of being just too small.

Most likely the remaining buyer would be entitled to get their earnest money back.

It's also likely that some or all of the homes will need some type of rehab to make them rent ready.plus you'll need some cash reserves not only to satisfy your lender but to cover operating shortfalls, especially as you are initially leasing up--expenses from empty houses but little income from occupied ones.I bought over a hundred in two year's time around a similar price point as you are proposing.  

So assuming you remained "cash flow positive" for the last 10 years, you have another 20 years (assuming a 30 year fixed rate mortgage) of payments that will in the end net you a negative rate of return around 50%.  

So if you bought the property for $500K perhaps $25K of that would be allocated to the pool and the remaining $475K would be split between the property and the land value.

I can fairly easily obtain financing (30-year fixed is generally what I go for) on the remaining $700K.