Purpose of buying crap house and holding for years? tax benefits

[Edward R.]

Hi!  I own investment property that I rent out and take my write-offs, but I just use my CPA to do the paperwork/return.   What are the tax benefits to holding empty properties that hold little value?  It sold for $44K and would take 50K to fix up and even then value would be barely $125K.  Taxes are $2,500K year.

Why I ask:  There was a house on my old street that sold at a tax auction 4 years ago.  the cape style home was picked through like you wouldn't believe (walls town apart to get to piping, windows removed)  it was a shell of a house that sat empty for 4+ years bofore tax auction.   Guy who bought seems to be a local property (rental) investor who also lives in a 1/2 million $$ home.  It's been boarded up even since he bought it 4 years ago.

How do they justify holding it?  All you could write off is property tax, lawn mowing and ????   

[Bjorn Ahlblad]

Plans change, market changes, foreign buyers laundering money. Bad decision etc. Stuff happens.