However factor in utilities because if it is in fact "raw land" you have to think about things like sewer, water, electricity, and gas. 

@Brandon MontgomeryIt depends on a number of factors including AGI, projected net income, depreciable basis, etc.

That also will play a factor in which route you take. 

However, like with any investment, it's imperative that you know what you're doing and considers various factors when choosing the most suitable property to invest in.

Using the conventional loan vs FHA and my clients having confidence to not request a unit vacant upon close were huge determining factors in the sellers accepting their offer.

So I'm willing to factor that in, and still have room for good returns. 

My wife and I have been looking to buy a property for nearly 2-3 years but life always seems to come first (second daughter, etc.) and financial freedom...well...second...We are making it a goal to close on our first investment property before the EOY but I'm thinking more like closing before the start of Q3...put some more realistic pressure on myself.I've been WFH full time (risk management) since the pandemic and have taken on multiple "COVID" Projects...for example I killed off and "renovated" my entire front lawn into a golf course lawn (0.5 inches height of cut)...lots of factors come along with making that happen but a key to my success was...you guessed it...a lawn forum.I love meeting new people and making connections. 

There could be other factors too.

Factor in the closing costs, realtor's fees and moving. 

And even if there is a 5% decrease (or worse), that still wouldn't phase me, because price appreciation isn't a big factor in my strategy -- cash flow is.