I'm trying to evaluate if we should keep the property or sell it/1031 exchange into another investment, but I'm struggling to figure out how to do the analysis.Initial Purchase: $65,000 (Cash)Estimated market value: $250-270k - We'd clear $200-250k if we sold.Current Rental Income (after expenses): ~$1,417My gut tells me that we can leverage the proceeds into higher cash flowing investments, but I don't know how to do the math.

After 5 years, you could borrow 50k again, with rate lower than today's mortgage.

More than likely, you will be out the time, the court costs, any lawyer expense and come away with at best a judgement that will costs you more money to collect.The best route is to talk to the GC and if you cant find common ground, part ways and find one that will in fact finish the work. 

With local home and land prices so expensive, I'd like to explore building a Tri or FourPlex on the back half of the lot. 

If not you can take out up to 100% Cash out where you might lose a low first rate but good news you can refinance in 12-24 months and lower the rate.Mortgage rates are getting better and will be back down in the next couple of years allowing you to refinance and recapture a lower rate if you take out cash now.

We aim for a target cap rate, say 6%, aligning with our investment strategy.Here's an example: if a property yields $1.2 million in income and costs $10 million, resulting in a 6% cap rate.Then there's the adjusted going-in cap, factoring in potential changes in income or expenses.

It will be more expensive for sure.There are some places you can get some deals on things delivered but they are often not the best quality.

You will learn alot of lessons quickly, build wealth, and potentially lower your cost of living.

Many investors from expensive markets, are choosing to invest in the midwest because of the yearly returns making more sense in these lower priced markets.

We both want to gain tax benefits so am wondering what I need to do to show the IRS that I am no 50% owner in order to write off expenses, depreciation benefits, etc.