This was a tremendous win for real estate investors, and it provides a unique opportunity for the passive investor to take advantage of tremendous passive losses the first year they invest in an investment through the syndication model.In the same example as above ($375,000 house with land worth $100,000), your depreciation expense could be closer to $100,000 in the first year compared to the $10,000 per year for $27.5 years.

I have a big chunk of cash saved that I need to put to use, but I'm having trouble determining the value of a new build vs a more traditional deal just buying a rental and rehabbing.I've been presented with an opportunity from a builder to build a new duplex in an area which can be used as short-term or long-term rentals in Knoxville, TN.The builder is a rare combination of fast, cheap, AND quality, and has written a "cost-not-to-exceed" clause into the building, so it's an extremely competitive build cost (details below).The deal would cash flow very nicely, but it would force me to leave a chunk of cash into the property.Here are the numbers:duplex: each unit 2:2, 900 sq ftTotal cost of land, 1.2 acres (This is already leveled, excavated, and prepped for building): $80kMaximum build cost: $252kTotal cost: $332kCash in: $67,000ARV: $350kApprox cash flow: $800-1,100So, again, how does this compare to a typical buy/rehab?

It is a very unique property that consists of a "tree house" that is purposely designed as a couple's retreat - it's very romantic and has all the right touches. 

@Pepper Bradford-  thanks - 1) anyone thats  bringing in  funds for the  down payment on a  inv purchase  will need to be a  co borrower and go on the loan / title   2)  this isnt  anyhting unique or new   for  traditional lenders    3)  many investors  will  balk  at  having to  provide your  lender  all their  financials / tax  returns  etc ....maybe you can  find some that  are OK with this 

You have a $400,000 house in Tampa that rents for $3,000 a month …3,000 / 400,000 = .75% a month in gross rentsYou have a $900,000 in St John’s County, Jacksonville that rents for $5,500 a month …5,500 / 900,000 = .61% in gross rents.Notice that the higher price point you get..the lower the rent / price ratio…making farther away from a 1%+ dealLet’s assume that in this market taxes and insurance combined is 2% of purchase price per year

its when a group of investors come together and combined capital to purchase real property. lmeinvestments.com

The last 36 month frenzy of quick and drastic appreciation combined with historically low interest rates often jades people into forgetting that RE is a long term gain, and time in the market typically reaps more rewards than timing the market.

In this case I would strongly recommend using a combination of an LLC and a Land Trust to avoid triggering the due on sale clause.

Normal market seasonality combined with higher mortgage rates and continued inflation suggest that lower mortgage demand and sales volume will continue well in 2023.

Proper insurance can get you a quote for the property + the boat rentals combined!