I am looking at a piece of land large enough to put 4 tri level town homes on it.The price seems high, especially for someone who is skimping on an agent (offered me 2k to "just put it in the MLS for him").Land is roughly 7,700 sq ft. and it is a corner lot.So on a rough analysis I would be looking at:$115 per sq ft for building costs13,400 total sq ft of buildings (to include garages)$1,541,000.000 construction costs$720,000 land sales priceTotal = $2,261,000Sales price per sq ft $200Livable sq ft $12,800Gross profit = $2,560,000Minus Expenses = $299,000Now, I haven't dabbled into building from the ground up but I would love to hear what I am missing in my calculations.

HI Siri,A lot of the options that you may consider will involve or is recommended to be discussed with a tax professional.Some options below, option #1 - You can utilize your parents section 121 home owner exemption (up to 500k married or 250k single - cap gains tax free for primary residence if they've lived in the home for atleast 2 of the last 5 years prior) and out right purchase this home from your parents via direct purchase contract/agreement (avoids commissions/etc).This allows your parents to have all the funds tax tree so there should be no capital gains state / fed/ or otherwise on these gains.This allows you to invest with those funds as you live in the home as your primary residence in the meantime (as you had mentioned).

A reminder that if you do get the Meetup organized to post in on the section in the BP website for meetings. 

I just saw tear in the corner wall.Deal just got listed 5 days ago.This is my first investment ever so I am freaking out!

I was under the impression the each paid $900 but just found out its actually $850 each and one of them is section 8.  

A great resource is the webinars section of the website. https://www.biggerpockets.com/proreplay

Tread lightly with section 8 a lot of turnover costs.

They will in a lot of cases talk themselves into a corner and you are the way out.You have done 2 things here, pulled away as an investor and were honest with them.  

Do no cut any corners to make a project look better on paper.Always remember to do the math anaysis and try to look at the prospective properties before you make an offer or at least have a clause in the sales contract that allows you some time (8 to 15 days) up front to make a detailed inspection on the subject property without a penalty that will hurt you too much.  

(SF Administrative Code Section 37.2(r)(4)(D)) Unauthorized units that existed before June 13, 1979 and were brought up to code after that date are also still covered under rent control.You live in subsidized housing, such as HUD housing projects.