An A class lot has full fencing, security cameras, lighting, paved or compacted gravel surface, and electronic gate access.

There are some nice "combo" units now, that perform both functions in one, compact unit.Be sure to investigate the actual condition of the existing supply and waste lines for the building, as that will be a major expense and likely overdue for complete replacement unless previously addressed. 

Large units with 3 beds command higher total rent even if the sqft isn't proportionally higher.

While house hacking, only the rented portion qualifies, so the study benefits are proportionally smaller and the math rarely justifies the cost.

Try to make a full kitchenette, even if you have to use compact appliances.

But then we have to get into talking about the passive loss rules, which may prevent you from actually being able to claim a tax loss if the deduction is more than your rental or other passive income.Or you can claim the actual expenses (gas, insurance, etc) for the vehicle and regular depreciation, proportioned by the percent of business use of the vehicle.  

Great topic — ground-up projects can produce strong margins, but execution risk is where many investors get caught off guard.From the builder/developer side, the biggest challenges we consistently see are:1️⃣ Site Work UnknownsFill, compaction, drainage, and soil conditions can shift budgets quickly — especially in markets where lot conditions vary significantly.2️⃣ Utilities & Impact FeesWater/sewer access, well/septic requirements, and local impact fees are often underestimated during underwriting.3️⃣ Environmental FactorsProtected species, wetlands, and flood elevation requirements can affect both timelines and build costs.4️⃣ Permit TimelinesApproval periods — particularly when civil or environmental reviews are involved — can extend holding costs beyond initial projections.5️⃣ Builder Execution CapacityProject success often comes down to the operator’s systems, trade relationships, and cycle times — not just the numbers on paper.Because of these hurdles, we’re seeing more investors lean toward ready-to-build projects — where feasibility, plans, and permitting are already in progress or completed — as a way to reduce entitlement risk and shorten timelines.Ground-up can be extremely rewarding, but the upfront diligence and execution planning are what ultimately determine outcomes.Always happy to compare notes with other investors and builders working through similar projects.

Cities in Ohio are generally considered more cash flow markets in that you will most likely cash flow depending on where and what you buy but appreciation may not jump as much compared to a city like Los Angeles (proportionally based on price paid and future price sold for as the prices in those markets are very different).

Not as compact compared to the city, better public schools, generally safer, etc.

Where I tend to see issues is less with whether money gets spent, and more with when and in what proportion, especially on smaller infill deals where the margin for error is tighter.The common thread across both approaches is being honest about uncertainty early and aligning spend, timing, and expectations accordingly.