However, many tend to use the following:Vacancy: 4-8%, Repairs/Maint:5-10%, CapEx:6-12%, Prop.Mgmt:8-11%Again, these are just ballpark percentages and may vary depending on each analysis.When it comes to future assumptions, these numbers are not necessarily needed on the acquisition side of the analysis, however it helps in the event you want to sell sometime in the future.

Recent appreciation in So Cal have easily exceeded this amount but I would not want to rely on such appreciation.  

Don't rely on a verbal disclosure.

Don't go  with Zillow estimates they vary in accuracy for these kinds of properties. look for something close in features that sold.    

This will vary depending on whether you are planning a 10 acre development or a 1000 acre development. 

My business partner and I have come across a client who has a property in md.2k sq ft , 6bd rm With 8 acres of residential land My concerns.Setting an offer price is difficult because the comps vary due to varying home and acre sizes of each property owner.

There are so many areas in chicago that vary block by block.

It varies.  

The highest investor bid was $40 below that.Investors, make sure you are doing your own marketing to generate leads and not relying on the MLS, because those good deals are drying up fast.Anyone else seeing this in their markets?

Now I know this is a very broad question and there is so many variables to give a honest answer, such as far as how they financed the project, what they are building, the size of the property and a ton of things more to consider.But for this post lets just use developers who build luxury spec homes. for instance we can use a big market like Los Angeles, how much do they developers really make who buy a single family house and develop a new luxury modern home and then put it on the market for Millions and millions.Seems like there is a ton of risk involved with it, and also seems like they rely heavy on financing with both debt and equity component.