You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment.

Coney Island is an exception because it is the farthest from the rush of the city.

A common mistake for new investors is trying to grow to fast.Having said that, you can do a wholesale deal for virtually no money (except marketing to find the deal) and that will help build cash.

It's very unlikely that the owner's willing to except 20% off when he won't get paid for years.

I know there are some area here that you can make much more than that but I rather have a place that I know it will not depreciate much and at least it will hold a value when I want to sell it in 10 or 20 years from now and have better tenants.Anyway, I originally offered him at $37,500(ROI @10.56%) but we have agreed on price at $42500 with no contingency except the inspection contingency but he wants all of November rent( I plan to close on or before November 15, 2013) and he doesn’t want to give me back security deposit ($600).

Is there a neighbor/handyman in the building you could pay a few dollars as needed instead of paying for constant property management to do nothing except take the calls you never get?

I agree with most of this, except that you can use the FHA loan to purchase a 2-4 unit property and rent out the other units if you want (completely legal and part of the FHA program).

the management involvement would depend on the situation in which we don't know, except for that fact that it's a industrial or retail.

The exception is if you plan on moving and reselling in a short period of time, the closing costs will eat up any profit.

There is a buyer with a long term contract in the house who has no incentive to do anything except make the payments.