The rule is that the replacement property needs to be equal or greater value.So thanks to an old IRS 1031 rule, you can sell your old properties without paying capital gains if you exercise the 1031 and follow their rules.

If that's the case, the entire amount paid before exercising the option could be applied toward the purchase, which would obviously be a great deal if your alternative was a hard money loan or other high interest rate loan.

Even if you don't end up buying the place, I think doing this analysis, playing with the numbers, and seeing where and when your profits come will be a good exercise and inform your investment strategy.So, no I don't think that 70 would be low ball at all if these numbers are correct considering the work you'd be putting in and risk.

That will be my built-in appreciation when the Buyer exercises his or her option.

If the tenants pay their $1500/mo. rent on time for 30 months (no rent increases in my case, but a greedier person might want the rent to go up $100 for every year), and exercise their option to buy, I will grant them 5% towards their down payment at closing.

The hand digging was an "exercise opportunity"!

Now, this does not take into consideration the current occupancy, Deferred maintenance, Age of the property, amount of land, upside, supply index of the market, and getting the ACTUAL Expenses, rather than using an industry average of 35% as I just did in our little exercise.  

Could do a 2 year lease now for the whole house with an option that isn't exercisable until after 2 years from now, with a 2 year sublease for you as tenant from tenant/buyer as landlord - or, with this structure, you could let the option be exercisable right away, since your lease would remain valid.

) WOW.......I was amazed at how friendly people were (and nosy) and how willing to chat with me.I listed and sold a property that is now the Fallston Shopping center on Belair Road, lots in Bel Air, commercial properties on Mountain Road (Maryland) and a few small subdivisions to mention a few.While fellow agents sat in the office (playing politics, and waiting for the phone to ring while on floor duty, I was out there walking and talking and getting good exercise, and getting to know people and asking my simple questions and getting leads).

If you choose to exercise your right, they cannot legally refuse.