In Financial freedom with Real Estate Investing by Michael Blank, he walks through this exercise specifically.

The crime rate will play a significant role as well. 

Regardless of the outcome of this specific deal, it seems like a good exercise as it will likely be needed in the future for any development project.All that being said, if this deal comes together, then creating an investor pool is my next big hurdle.

@William WashingtonI agree with @Danny Randazzo in a deal this size it is probably better to form a JV and clearly define your roles and voting rights in the operating agreement.

But until then (and beyond), the expectation will be that they live and use the property peacefully.Removing yourself from any role other than that of the landlord/owner will save you from all the games people play that really are not for us to participate in or resolve.  

That is a fluctuating range as finishes, location of sewer and utility connections, size, location, access, etc all play a role in costs.

In 24 hours my wife and daughter and I will role into our vacation rental in the Outer Banks.

No mention of government’s role in the financialization of real estate with FNMA and FHA.

I actually donated one to a BP member as an exercise .. and give back to BP that has been so good to me..

Do you then rent the property month-to-month until the option is exercised or expired?