It's possible that the configuration of the lots makes it difficult or undesirable to build what the HOA requires on those lots -- or is difficult to adhere to HOA covenants while still adhering to zoning rules. 

You will be looking at recognizing the increase now as opposed to later.

Depending on the market and your specific criteria, they may also be much more difficult to find.

In most investing scenarios, even outside of real estate, as the risk increases, so should your return.

This allows me to do a 1031 exchange and get into newer properties with better tax advantages (once I have used up most of the depreciation from the previous rental), and it allows me to never deal with deferred maintenance issues that increase my cost of ownership.

Never mind the fact that there are a whole lot of people looking to buy a property (increasing by the day) to live in themselves.From what I have seen, most MLS listed duplex properties in Denver (and most other properties, too) are at a purchase price that would put you so far away from the 1% goal - it would be impossible to cash flow them now or in the near future. (1% being the rough guide for considering a property, rent/month is 1% of the purchase price of the property).

It is a very difficult timeline, but then again, if it's a really good deal and you are committed, you will find a way to make it happen.2.

I am not an investor, I am a high school educated self made businessman who made the difficult journey and transition from government assistance apartments as a kid to the proverbial country club.  

If it has tenants, this sometimes causes the property to sit since they can make it difficult to set up a time to see all the units. 

There are a lot of properties for sale - if you have the down payment, this should not be so difficult for you.