Their lifestyle does not afford them the freedom to do so.Effectively, just like being dependent on your employer for a paycheck limits you as to the hours you are able to devote to your own pursuits, the more you are dependent on other people (or the government), the less FREE you are.You begrudge them for their hair and nails, I feel sorry for them that this is the only type of luxury they will ever experience and that they are happy being in the little box that they trapped themselves into.

I plan on holding on to them, however I am concerned that any downward movement in the RE market would limit people's ability to sell and thereby increasing the amount of available rental properties.

You can limit that risk by using a small deposit.

You use them which is great, but reading the forums investors are talking about the rising interest rate, and the FHA 10 loan limits, which is leading me to believe that most investors here are using full recourse loans.

Lifestyle?

I was curious to get your opinion on best marketing strategies on a limited budget.

From my limited experience (and reading the book on rehab costs), I estimate the exterior rehab costs alone to be $35k.I have not seen the interior of the home but it can't be good.

I know you can do multiple properties in a 1031 exchange but I don't know specifically if there is a limit.

Here's what I know:The city of Corpus Christi has a 3-yr apprciation rate of 5.9%The city of Corpus Christi has a 1-yr apprciation rate of 6.7%Zillow predicts that the neighborhood will appreciate at 7.4% in the next year.The house is on an island, so expansion is limited but has not yet capped as there are still vacant lots scattered in this area.This address is in the best school district of the metro areaThe city experienced 10% net population growth 2000-2010The city's two main college campuses had a combined enrollment of over 22000 students in 2011.The city's top ten employers are in the sectors of military, education, health care, contruction, government, and grocery (local grocery chain headquartered there)The house is a 3 bed 2 bath, which is on the small side of avg for this area.What more what YOU need to know before deciding to invest in this area?

You'll have to deal with inspectors and limits on rent increases.