Beach front property isn't likely to depreciate unless it's under water, so buying lower now should have a high yield in the future.

Like you said, I don't want to buy now, then be underwater in 3 years. 

My brother owns a house in Warren with similar numbers, but he is underwater on the mortgage (bought in 2004-2006 time frame). 

Alot of them are houses that are underwater.

I stress really because even though HARP 2.0 is supposed to help with underwater or high LTV ratios, investment properties, and all of that, in my experience every lender has so many in-house restrictions that it's virtually useless.

In that event, it would not make sense to buy the property because most properties in the current market were underwater prior to foreclosure.

I had considered this a "capital gain" and thought it would flow through from my K-1 to personal tax return as such, and as a result, I consciously sold a significant amount of my "under-water" stocks at a loss to try to "offset" that gain, so as to lower my personal tax liability.My accountant has informed me that because it was "rental real estate", it is considered a 1231 sale, and as such, it is considered "ordinary income" and not a "capital gain", with the important implication of that being that I am not able to use my stock losses as an offset. 

. - REMOVE CARPET MATERIAL ON BASEMENT FLOOR AND UP STAIRS - REMOVE BASEBOARD; DOOR CASINGS AND INTERIOR DOORS - REMOVE SHEETROCK UP TO 84” HEIGHT OFF OF FLOOR - REMOVE WALL TILE AND SHEETROCK SUBSTRATE IN BATHROOM – SAVE TUB/SHOWER FAUCET & TRIMS - REMOVE BATHROOM VANITY – SAVE FAUCET - SAVE TOILET, TUB AND TUB GLASS DOOR - LEAVE HVAC AND HOT WATER HEATER IN PLACE FOR INSPECTION - LEAVE ALL ELECTRIC IN PLACE FOR INSPECTION - LEAVE FRAMING IN PLACE FOR INSPECTION - REMOVE INSULATION ON OUTSIDE WALLS - NO CEILING WORK - REMOVE STAIR TRIM THAT WAS UNDER WATER – LEAVE TREADS AND RISERS IN PLACE.3.

Most of it was under water 2 weeks ago because of the hurricanes (yes multiple) and it's prone to flooding.

Students still came to school and paid rent so no one really went underwater.