, no income (2.6 million jobs lost per the NY Times, same crash, remember), someone else's money down (the PROPER interpretation of "nothing down").

The two year interpretation came from one case law decision where "two years" was used as an example of an appropriate holding period. 

Depending on what happens with tax laws / interpretation, after 10 years you get the step up in basis I thought.But, again, make sure you can 1031 after 8mo of renting.

Assigning contract in every state that I know of is interpreted as marketing a property that you do not own - and that requires a real estate license.There was a recent BP podcast #231 with Brent Snodgrass that discussed this in detail.  

Again I know nothing about the market, but I just don't know that the fundamentals of what you are describing (or at least my interpretation) make sense.

So my interpretation of what he says would be to find highly sought out areas (depending on your investment strategy), and analyze deals in such a way that if you were to find a less than desirable property (C or D) and are able to rehab it to that of a (B) then factor in desirability v/s market v/s expenditures to result in the highest ROI.

Here's an example below...Eppraisal: $60,456Zillow: $16,800How should I interpret this information.

Perhaps a more strict interpretation of the rules here would help with this problem.

They do not specify and there is no set rule, like most of the tax code, it is left up to interpretation and gray areas.

I would normally interprete that statement as meaning you own 16 rental properties.