But you want to take the value of the land away from total value, that is the assessed value of the improvements.

It wasn't in that bad of shape when we bought it, but it did need a lot of tlc, the former owners lost it in foreclosure and it looked as if they had been just doing the bare minimum in upkeep for a while.

One big thing is the land value is only $40K, so the depreciation is high vs. the purchase price..

The value is in the land, and it has to be within a reasonable range in order to make it worth it for the developer to buy and develop.Also, if you are going to buy another place, you might consider doing a 1031 exchange.

If you are looking to buy something that is less than 4 units on parcel of land, then you'll be looking for a residential mortgage.

I won't spell out that case here, but land appreciates and improvements depreciate.

Thanks Josh and everybody for the great education!

I'm an airline pilot and Air Force Reservist looking to get into SFRs. I've been lurking for about 6 months and really appreciate the realistic approach of this si...

Overall the building is in great shape, with the only major maintenance issue that I can see is that the roof looks at least half way through its life.It's listed for $49,500 but has been on the market over a year likely due to comps.

I couldn't even tell you exact numbers without seeing my tax returns, but I know I have bought and sold over 30 pieces of land every year for over 12 years now houses hard to tell but at least 1/3 the numbers as I do land.

I like the numbers and even with all cash these are the numbers I look for getting in at 60% of arv makes me feel real cozy about the deal. when the property and fix and repair cost are under 70% or arv your in good shape.