There is so much more info e.g. what shape the house is in etc but I am trying to keep this short.

It's a little hard to tell from the pics, but if the windows are in good shape, I would leave them as stained.

The 1031 exchange is the powerful tool that allows you to use deferred tax throughout your investing life to shape the portfolio the way you desire.  

However, the building makes money without the conversion, so I think I'm good either way.The units are in very good shape, so I'm hoping the $200/mo estimate for repairs isn't low balling. 

I was givin a property address by a friend who says the house is in rough shape.

The 4 are in a newer development over 100+ units, solid association that is trending to more owner occs but still plenty of investors. 

The house was in bad shape when I took possession, and while I did nothing to improve the property I also did not cause any damage to the property.

Scott Scheel mentions that for bigger properties it is tough to get a good deal in markets that are already showing good indications of future growth (either already in the process of growing, or showing the "obvious" increases in population/job growth) He says the best deals are frequently found in weak or even declining markets where you have much better leverage with sellers.This is a risky proposition because real estate trends seem to last quite a while, but if timed correctly an investor can do much better than average by getting in early before the rest of the herd does.Do you guys have any ideas of how to anticipate a potential turnaround area before the census data refects it (IMO this data is a beacon to RE investors) I have a couple ideas I think may be worth looking into:-Projected inflow of large, new employer-New transportation artery-Unaccounted change (in census data) of demographics (undesirables moving out, nicer crowd moving in)-Perhaps a well structured conversation with someone at the economic planning department to find out how close to fruition some upcoming changes are taking place.

Dan,if it is a new development in a high end neighborhood with an HOA and a recorded final plat of the property you should be in pretty good shape.

You will need to figure out the long-term trends of various industries, the prospects for companies within those industries, the quality and honesty of management, etc.