I've been reflecting as well on this topic.

I'm breaking into the field of REO's, so could use some advice on this topic.

Welcome to BP.Pick your topic thread and ask away!

I devoted a fairly extensive case study in my latest book trying to show that a single-family house, even if it's held for rental, is a critter that's quite different from a true income property.You might want to see an article I wrote that is directly relevant to your point about creating value by improving NOI.

I believe theirs an IRS pub on this topic, but don't recall the number.

I do not understand how this is not one of the hottest topics in a forum of so many full time investors?

I have not been commenting lately on topics, but I will comment on this one.

Reminder: This ends tomorrow (Dec 31).For more detail on what is included at no charge (quite a bit -- name check; filing; bylaws / operating agreement; share/member certs; QuickBooks Simple Start): Check the biggerpockets classified:http://www.biggerpockets.com/forums/53/topics/26064-free-llcs-corps-from-intuit-s-mycorp-ends-dec-31-?

Simply to say that if you can get into a property with 35% equity at purchase, have adequate reserves, you can still benefit from that investment without cash flow (tax deductions, 35% equity, future appreciation, etc)Bottom line: Shoot for cash flow on buy and holds, buy with equity, buy in a market your research has pointed to future appreciation, use the power of leverage properly, manage properly (self or hire) and repeat.The topic was talking about single units and then apartments were mentioned.

Welcome Marsha.The forums and articles on the site are a tremendous asset.