However, now that properties aren't moving and the good ones are starting to stand out more and more, I can totally see the nasty property profit centers becoming valid once again.  

I bought a property in July where the tenant refused entry when confirmed showings came to see the property (including ME)!

Hi @Chris Baxter, I suppose this is when investors have to get creative in creating new streams of income, i.e. laneway house, walk-out/separate entrance basement, garage rental, etc.It would be interesting to see the spreadsheets for investors these days buying $1M+ properties...are people buying into the appreciations so much that they are willing to take negative cash flow? 

Make sure you see the inside of every apartment.

They don't see the paperwork for the other closings.As @Anthony Angotti mentioned, you can protect your offer by recording an Affidavit of Memorandum of Purchase and Sale.

A great recent article from a BP member that could get you started on thinking about pricing your HUD offer: http://www.biggerpockets.com/renewsblog/2013/07/07/buying-a-hud-home/ The author also has a blog that goes into more details @J Scott, When you see the Hudhomestore listing say something like "Repair escrow: $4,070", what does that tell you?

I don't see the Fed keeping interest rates at zero forever.

You don't want to rehab the whole place, have it look fantastic, and then have buyers be a little disappointed when they see the appliances.  

However, long-term real estate investing makes sense to me and I can see the value in actively working the business as an investor over a 20+ year period.I can always increase my 401(k) contribution back to its original rate in the future once I feel solidified with my real estate portfolio foundation.Has anyone else taken a similar approach when starting their real estate investment journey?

Using classes allows us to see the expenses and income by property.