Originally posted by @Mary Ann Casey:My go-to spots have been Home Depot and Lowes, Oakland's Habitat for Humanity,  I agree - Habitat for Humanity usually has really great deals - we were able to pick up some $40 light fixtures for $5 and $75 fans for $10 - many things you can find are still in good condition - they have great deals on nails , screws, used paint ( it's not in the shape of a house)  etc.  

I find they could be covering up an unauthorized resident, property condition, or problem they fear they may be charged for......So it can compound a problem if you neglect these routine peeks in a unit.

Also I would conduct a inspection of the premises, bring along a 3rd party so no bs gets made up, and document the current condition of the unit with photos or videos.

What are the conditions?

Of course I would do all my due diligence on any decisions made and would like to know if there's anything materially wrong with what I'm suggesting below.I am interested in buying a property that needs to be fixed up but is in good enough condition to rent.

In 99% of the situations, the buyer has already viewed the property and accepted its condition before submitting an offer- they don't feel the need to run an inspector through for a 99 point checklist. 

It could also allow you to finance the property more easily, as you won't be dealing with the pre-repair value and condition issues that may make it more difficult to get financing.

What condition are the vacant units in?

So weighing the tax breaks of longer holds against the risks and opportunity costs, I believe Bruce's strategy makes less sense for me personally in my situation and my market, but works very well for him.This is what I love about RE, it is so nuanced and location specific that a guy like Bruce can do it 1 way, and be completely right for his situation and market, and another guy like me can do the opposite and also be right (I believe) for my situation and market ... different markets, different conditions, different strategies ... this may be confusing to newbies, but I think the value for others is not in the strategy to copy, but in understanding the thought process and rationale behind it ... then they can apply a similar thought process to their market and situation to custom fit a strategy for themselves.

(I.E. squatters, fires, and the demo costs if the city when the city requires you to remove it after say year 15 due to its dilapidated condition.)