That have an exception in the title regarding the encroachment issue, but it shouldn’t prevent you from closing.The worst case is if the building were to be destroyed by fire or other means (usually the 50% rule is applied) the rebuilding would not be allowed unless in compliance with setbacks.  

The risk is in several areas: the syndicate itself and the trustworthiness of the constituent parts - it's hard to feel safe parking all of your capital in a project with people you don't have a relationship with, the structure of the deal logistically and legally- whether you're active or passive like @Michael Ealy pointed out there are still risks: Industry Knowledge: You have little knowledge of the industry and so with the best will in the world you'll have to rely on others to guide you unless you wait until you have educated yourself sufficiently to feel good stepping out into such an exposed position right at the beginningGrowth Prediction: With the best market analysis in the world ( believe me I did it for a long time when I was managing a Management Consultant team predicting for M&As with large portfolios) you can still be wrong-footed - a predicted bridge funding falls at the last hurdle, the new Corporate office planned for the huge new park goes under at the year end etc. whilst Real Estate investment always depends on future predictions the quality of the predictions for a large project are crucial and the timing of the project has a large part to play in the returns you can expect- unless you know your way around what truly drives a city /neighbourhood's growth you could be blind - sided by a greedy developer with form but without due and careful diligence.Construction Error: Once ground has broken the risk increases significantly - you can get into negative equity very quickly - if there's a permit mistake, legal loophole, engineering inaccuracy, fire regs many things can cause the building to be torn down - razing a building to the ground costs a lot of money.These are just some of the issues obviously there are many more and having prior experience and knowledge are very important at this scale.Another point I wanted to mention too is that predicting for appreciation is not the same as predicting for an increase in price so be wary of inflated or misleading price predictions - inflation and it's commensurate effect on value can have a house or apartment complex growing in price but not in value - the value of a property is not the same as it's price -remember that the value of the land is separate from the value of the structure on top of it - structure value ALWAYS depreciates from completion whereas land value normally appreciates so if prices are rising it does not necessarily mean that your structure value is increasing.Hope that helps.

ACV - if a tree crashes into it and destroys it or it burned down tomorrow (say, a tenant leaves groceries on the stove and it gets turned on or they plug in cheap phone charger and it catches on fire - both problems we've had), can you rebuild for the $180k?

If it is currently rented and paying for itself, there is no need to fire sale it (or take less than what you consider value) in a buy and hold scenario.

Good morning bigger pockets! New investor and agent here! I have a client who wants to buy a home in Dumfries, Northern Virginia. This is his first home, and he wants to also use it as an investment property. How do ...

LOL, in college my roommate set the apartment on fire by throwing a lit cigarette in a trash can. 

Advent Health just recently took over Florida Hospital and is in the process of improving service and renovating, so coupled with West Marion and Ocala Regional there is a good demand for doctor's and nurses which UF just keeps pumping out every year :) As for manufacturing, E-One (Fire and Emergency equipment) is still a big player in town, Signature Brands has a presence (Betty Crocker).

Your "innovative" PM may find very quickly that they are losing money hand over fist or they may just suck and you have to fire them.

That the wise thing to do is a fire 🔥 policy with zero “0” liability to show the attorney and then a general comercial Liability with an umbrella ☔️ .

dont agree. one person downloading child porn can expose you to potential trouble.That is like saying you don't need insurance because you haven't had a fire for lawsuit yet.