You might be right in the case of a really crap tenant out for blood...but then again we have to think of what action got him to that point of seeking revenge to go to such an extreme requiring such effort.I have low income tenants and I have never once owned a building where the tenant supplied/paid for heat.

With these units "in the attic" what challenges exist in the lower units when you have to run supply and waste plumbing and electrical wiring (from a basement?).

Law of economics is supply and demand.

He also bragged about a free and clear home, and foreign sports cars in his garage.

Now, that said, a lot of the investors in the #2 category buy in locations where they have good reason to believe that long-term appreciation will outpace inflation (due to changing demographics, lack of supply, etc).

Then you'll potentially have a supply of wholesale properties.

You MUST be prepared to supply the Lender with documents to justify the offer.

Matt Phair, HousingZone Contributing EditorJanuary 14, 2010HousingZoneThe Dallas-Fort Worth-Arlington, Texas metro area heads the list of best real estate investment markets for 2010, according to FinestExpert.com’s first annual Top 20 Real Estate Investment Markets.The survey analyzes over 10,000 real estate markets according to the US Census data (covering over 95% of the US population) to identify the most suitable places for real estate investors to seek stable and growth oriented areas.Stabilizing and turning-around housing prices follows basic supply and demand principles.

So more supply from these foreclosures being rented and decreased demand because of a population dip reults in lower rents.

Here's another article that corroborates this info:http://www.housingwire.com/2010/03/23/home-prices-continue-decline-as-economist-sees-accelerated-double-dip/The article discusses how recent declines in existing home sales and increases in the excess housing supply portend further price decreases.