@Leo B.So as a rough guide (cause you'll want to factor in things like depreciation you have to recapture, capital expenses over time, costs of sale etc) if you bought for 400 and sold for 500 then you have 100K in profit.  

It's pretty cheap and you get literally dozens of different designs created just for you. 

I admit, I have done a few deals without coverage, but I also knew the properties very well, knew the factors associated with the title, knew they were clean without any construction or other matters that could be the basis for any claims, and, I was willing to accept the risk (self insure) my period of ownership.

In my area almost half a condo building is in foreclosure and none can be rented as that's the association restriction.Are you also factoring in:InsuranceProperty managementVacanciesMaintenanceIf you aren't sure of the costs then 10% is a good number to use for pm, vacancy, Maintenance.Plug all those numbers in again and see how it looks.Also you might consider going a little further out for a SFH or multifamily.

It sounds like you got it at a good price too, just make sure the numbers still work after you factor in repairs.Good luck and let us know how we can help!

Closing costs on both the sale and purchase also factor into the calculation.1) purchase price plus your closing costs is your initial basis.purchase price $100,000.00purchase costs $2,000.00initial basis $102,000.002) depreciation reduces your basisvalue of improvements $80,000.00annual depreciation $2,909.09depreciation after 10 years $29,090.91basis after 10 years $72,909.093) closing costs on the sale reduce your net return from the saleselling price $150,000.00selling costs $3,000.00net selling price $147,000.004) net selling price less your basis is the total gaintotal gain $74,090.915) the gain is now split into unrecaptured depreciation and capital gainsuncaptured depreciation $29,090.91cap gain $45,000.006) And the tax is computed on eachrecapture rate 25%cap gains rate 15%recap tax $7,272.73capital gains tax $6,750.007) add them up to get the total tax billtotal tax $14,022.73Do notice that each year you had a deduction of just under $3000.  

The house is located in a cookie cutter neighborhood of only a few different house designs. 

We are rapidly moving toward growing our "Southern Standard" design concept on our homes.  

Definitely contact an engineering firm that has experience in deep and elevated foundation design; 20 feet below floodplain... that's rough.  

Thank you Darren.Yes, defimitely inderstand that the rule is not by any means the only determinimg factor in whether a deal will make sense from am end-buyer's standpoint.