As new to the US real estate (i am a foreigner) I want to start with multifamily (ideally apartment buildings) already rented and in OK condition to generate immediate cash flow without having to incur large expenses in the first year(s).I am looking in PA (as I have some connections in RE there) or FL (nice weather).

Have you considered selling shares of the LLC to individual investors rather than the conventional financing route?

Many times I've heard from folks I deal with or have taught that it was their presentation that tipped the scales in a transaction.Even when it doesn't, it builds your reputation as a knowledgeable professional --- and that's what may seal the next deal.

Chances are you will - have a deficiency judgement, - if there is a second mortgage you will owe that money, - the IRS views the debt as forgiven income (see a CPA), http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-- your credit FICO score will drop as much as a foreclosure,and - your borrow-ability with any government agency like FHA will be harmed for a long time.So what is left?

.: In the short time "lurking" and then joining BP, I've already learned quite a bit and had a chance to meet some great individuals.

@CL Tumlin ,Depreciation as @Dave T said will be prorated for the number of days in the year.Unless you initially segregated out the costs upon purchase between the individual components of the home you will continue to depreciate it over 27.5 years.

The value of this loss of property is subjective and can result in widely differing figures depending on the individual properties.

Is this an opportunity I should take advantage of, even though my personal finances are not ideal at the moment?

However, our conversation was about being "Recession Proof" now I now I've seen a few individuals on this site talk about this topic, paticularly Rich Weese and others about eventually becoming "Recession Proof/Prepared" for any, and most economic downtursn.

I think REOs are even tougher than individual sellers.