Quick question for you-- I recently completed a complete gut/renovation on a duplex in Minneapolis. 

There is no one true way to make it in our dream world so stick with your gut feeling.

Gutted the property.

And the changes we made (like taking down the popcorn ceiling while the house was gutted) were with an eye on the 10+year sale plan.And we think, likely, many of the seasoned landlords wouldn't have done the rehab as we did. but we hoped that our savings in doing the work, and what we know our competition is (filthy, old, tired) might pay-off with a tenant who will appreciate/sorta care for the house...maybe.Cin.

This assumes a total gut.

They were very clean, quiet and stayed for a few years.I did not check references as my gut with these ladies told me they were responsible and they proved same.

Buying gut rehabs making them nice and renting them out is what I would do.

Houses have about a 40-50 year life - which can be extended with extensive gut renovation.

Total Gut rehab estmated at 150k-200khttp://www.zillow.com/homedetails/30-Bradford-Ave-Montclair-NJ-07043/38680935_zpid/Recent comps: 4 Windsor Place, 4 bed / 3/1 bath 2,341 sq ft. acreage = .3, sold on 11/21/2011 for $769,000403 Upper Mountain Rd., 5 bed / 2 bath, 3,000 sq feet; lot = 15,000 feet; sold on 11/28/2011 for $740,000182 Highland Ave., 4 bed / 3/1 bath 2,178 sq ft. lot = 36,000; sold on 12/06/2011 for $740,000over 6 months:250 Highland Ave, 4 bed / 3 bath, 2,271 sq ft. acreage = .91, sold on 9/26/2011 for $620,000337 Highland Ave, 4 bed / 3 bath, 3,086 sq ft. acreage = .3125, sold on 7/28/2011 for $675,000Other known information, has below ground oil tank, that has pinhole leakage estimated at $6,000 (but you do not know till you get in there), seller has limited/no money to fix.

Also, your first deal was a project where you were essentially doing a gut rehab without the demo.