Hi BP,I have a friend of mine bought a land through tax foreclosure auction...he bought it without doing any due diligence ahead of time, anyways he found out its a very small lot and worth nothing if he is trying to sell.The appraisal value is $12k and he paid a bit less but no body would buy such lot on the market...somebody told him to donate the land to the city or the county or some sort of organization that helps people and file it on his tax return as deduction. my questions are: 1- Any suggestions who to target to donate the land 2- If he donated the land can he file it as a loss or deduct it from his tax refund at the end of the year...he is entitled to pay some capital gain taxes on other properties he sold so this deduction will definitely help.3- If point 2 is doable will he be able to file based on the appraisal value $12k?

It doesn’t sound like the inspection was a big part of your costs...I am anticipating that as a bigger portion in MF than in your commercial example.

Insurance does have the ability to cover loss of income, but it's expensive.  

I would say this loss would justify filing a claim.

I'm going to chalk this up to a loss and move on.

@Aaron BitnerWelcome to Bigger Pockets.

That said, i would not recommend anyone in this market to accept anything with less then 1% EMD of the purchase price.If you look at the from the seller perspective, you have a buyer who is not even going to purchase your home but hopefully assign it to someone else and can walk a way with $0 loss, i would not take my house of the market to let this person "try" to make money.As a seller, i would also expect Due Diligence Money.

If it were me I'd keep it because I'm not a fan of leveraging to the hilt but there are many on Bigger Pockets who will disagree with me.

I am not afraid of work and I look forward to it, I’m just stuck wondering if I should not be patient and get a smaller deal quicker, or be patient and save more to get a Bigger deal later.

I’d HIGHLY recommend the bigger pockets book on managing rentals.