Again we are reviewing our investments, potential developments, defensive positions.My outlook is the stock market needs to come down 50 to 60% this year.  

However, you can still depreciate the remaining basis under standard MACRS rules.

If the rules are violated and you were lazy-fare in addressing the violations, YOU become directly responsible legal and otherwise.  

However, you can still find real estate markets that have both positive cash flow (aka hitting the 1% rule) and strong appreciation potential. 

That way the only thing they would depreciate is the 27.5 year rule 

My general rule of thumb is that a property needs to do 15-20% of the purchase price in gross rental income.

I’m not suggesting you shouldn’t consider this opportunity because my current company has about 50 homes throughout New England with about 1100 employees and is well funded.

I think demand is decent.If you're looking in a flood zone you'll definitely want to understand the FEMA 50% rule.

In addition, due to the 2 of 5 year rule there often is no need.  2) you cannot 1031 a property that has not been put into service to be an investment property 3) you cannot 1031 a flip.  

For Neal it may be win-loss of 50-50 or 60-40, both not bad on average for funds.