Also, in areas that have a high probability of positive cash flow, you often sacrifice being in a highly appreciating market.So, if you are only focused on positive cash flow, you will be paying the IRS a good chunk of your money, and you will be short changing yourself on appreciation.According to this book, appreciation is the best vehicle for wealth building in REI.

For the investment vehicle to use, I was thinking of ITB which is the US Homebuilder's index ETF for house construction projects, and REZ, the residential equity (i.e. home rentals) REIT index ETF.

I will leave you with this conclusion to my post, the reason I personally pursue loans as a vehicle for investment is because I simply love the complexity and the amount of moving pieces that are involved.

However, you cannot create a loss with such a deduction so lets assume the S-Corp only had $12k profit & the qualifying vehicle was $20k.

maybe a vehicle, boat, motorcycle, equity in something???

Pick one investment vehicle and focus on it.

He bought a UAV (unmanned aerial vehicle) or Quad Copter with a GoPro camera attached.

After all, if they liquidate their assets, they would be subject to a hefty capital gains tax, and, they would be pulling their assets out of an income bearing vehicle.

I think its more people choosing Real Estate specifically as a investment vehicle thats contributing to the problem.

If it's a misunderstanding, I would do many drive bys at different times to monitor vehicles and see if you can get clues on who is living there.