Microbial influenced corrosion (in addition to others) often manifests with creating blisters on the outside of a pipe as the interior of the pipe develops a depression.

Many commercial loans can have an ARM where the underlying index will be based on a real interest rate, in which case whether you benefit or not from inflation will depend on the increased cost of debt service compared to the increased revenues from higher rents.Also, as I have pointed out earlier in another thread, higher interest rates increase the discount rate used by future investors and can depress property values if you try to sell an investment property.

It is really tiring and depressing to spend almost 2 hours just talking about pre foreclosures.

You must be comfortable with myriad types of major problems to be purchasing these.All REO's (real estate owned, a banking term) are listed on your local MLS.  

Just be cautious with your numbers because it's still a fairly depressed area.

By that standard, even with the downturn, you have a 2-3 year pocket against a long-term investment Yes, a lot of short-term investors leverage their properties to buy more properties (utilizing a HELOC), but that's not any different than what many standard long-term investors doThis situation is awful for a lot of reasons, and may keep short-term rental numbers depressed for the next year- but a lot of short-term investors already know what a depressed season is like because rentals don't do as well October-March.

I'm sure those in Memphis, TN can calm my fears though ;-)Memphis proper, like a lot of major cities in America, may not be growing, but the MSA is. 

Obviously, in areas where pricing has been recently depressed due to economic or other conditions, there is usually more opportunity. but without a strong team and enough knowledge you can end up with mediocre result anyhow.

However during inspection we found $100k worth of major repairs ($35k furnaces, $30k electrical, $15k roof, $10k fire escape, $10k sewer pump).

Rene, is right, proforma numbers are not real, they are are typically a best case scenario of what the property could bring and are based on projected returns and either depress or completely omit, things like vacancy, maintenance, increased utilities, management fees and ground maintenance.