The one that creates the most wealth is appreciation.

Well done reaching $500,000 members imagine now sharing $1.00 from every member as an investment to create a syndicated operation of pro-members  for everone to "tap"into as a vetted fund -- a financial reserve to do single-family, multi-family, commercial properties-- since there is strength in numbers as a cooperative AKA as a pooled investment for even more growth in doing real estate transactions for years 2016 to 2030.This would eliminate private lenders, hard money lenders, angel investors or banks (I so dispise banks and their non-best practices) the reality is similar to an "acre of diamonds" where wealth is in your back yard (see my post in innovative strategies) to convert non-members into pro members...just saying

He proceeded to tell me that "all his very, very wealthy friends" utilized these deductions and write offs.  

What I think you'll find is that these people are independently wealthy in other areas.

This debate reminds me of the question, “which diet is best?”

But still, rental income investments in single-family homes are still widely popular around wealthy people here, mostly relying on a "safety investment", meaning putting their money where it will not devaluate with inflation and maybe get some appreciation over time.I was able to get 4% Caprates with 50% down payments.

It's not such a big deal to rent to lower income people, just make sure you don't rent to lower class people.Lower income = not having a lot of moneyLower class = liars, drug users/dealers, questionable morals, lack of respectThere are lower income people that have a high amount of class just as there can be more wealthy people that are lower class.Lower income and lower class people can come in any color. 

Do you deny rentals to wealthy young adults who might have unestablished credit histories?

I have always known that many wealthy people lost much and took great risk to follow their dreams and have overcome defeat, some even many defeats, in spite of the nay Sayers who only know defeat. 

This wealth is comes from stocks and overseas investors.