@Justin B.I'm not a big fan of basement units nor of finished basement, especially when they are below grade and the only exit is up the stairs through the house.The dark, damp, musty, basement is not my idea of either an apt or a family room.

I'm picturing a nice yard with a long drive way that leads up to a detached 2 car garage (basketball hoop and all), next to a long brick house with 1100 sq ft, fenced in back yard, with a central air unit, inside you've pulled up the shag carpet to find hardwoods that you have redone, nice kitchen and bath, nothing fancy but newer flooring, newer counter tops and vanity (just rental grade), fresh paint, nice smell

LOLWas somebody in grade school in 2008?

I received and email recently that stated that there was a B grade property available in a location in Cleveland. 

There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country.

@Julie CookI work in an area with many private roads they are regulated either through a Homeowners Association to cover the cost of maintaining the road, drainage and other grading and culvert issues. 

The tax deal baffles me because the prices are all over the place for basically the same type of home on the same size lot and the same age.For our own home we are looking for 5-15 acres with a nice sized ranch home on it, not in a flood plane with the ability to build another home on the property and it needs tax exemptions close to The Woodlands. ( within 15 miles as this is the area we want to call home )I noticed that many rural properties have ponds on them, I am assuming this is done to use the dirt for raising the grade of the home to avoid having flood insurance.

If you've got a large net worth and significant tax credit appetite you could look at other investment avenues such as smaller investment grade solar projects which can pay out a nice and reliable return.

Many tenants are credit rated but their is a difference between investment grade and non-investment grade of a credit rated tenant.5 years is nothing on a lease with a 5 year option.Lenders do not like this as it is high risk.The 5 year option however small the chance could not be called and now the lender has a problem.Who will go in there to fill the whole space or will they fill only partial space and the owner/investor now has a hard time servicing the debt.Lenders see less risk in a loan period that matches a guaranteed lease instead of 5 years on a 25 year loan and then you do not know what happens after that.GSA's on leases are in the high 4's right now and that is rockin it for rates on commercial.I do not know where you are getting this sub 4 stuff.

New roof: $5,000 New siding: $2,500 New drywall: $7,000 New plumbing: $2,000 New elec: $3,500 New flooring: $2,000 Painting: $800 Cabinets: $1,500 Fixtures: $2,000 Appliances: $3,000 Total: $29,300 Don't forget other possible expenditures...we have to do most of these things on most of our rehab houses:- HVAC (could easily run $3K)- Framing (if there is termite or structural damage)- Mold Remediation (could easily run $5-10K)- Doors (could easily run $1-2K)- Windows (could easily run $3-6K)- Bathroom vanities- Showers/Tubs- Subfloor/Trim- Main Plumbing Line Replacement- Outlets, Switches, Registers, Smoke Alarms, etc- Gutters- Soffit/Fascia- Garage Doors/Openers- Termite Treatments- Decks/Porches- Landscaping/Grading- Garage Doors- Chimney Repair/Chimney CapThat stuff could easily run another $30K...I live in a major metropolitan area (Atlanta), and generally spend about $30/sq ft for a lower-end gut rehab, and with typical houses around here of about 2000 sq ft, my typical gut rehab runs about $60K.So, if this house is in anything by a low-end neighborhood and in a typical location in terms of cost, $70-80K is probably pretty accurate for a ground-up rehab.