they are saying this is a poor metric because demand is measured by absorption of a previously vacant unit, rather than by measuring all the demand for units that exist. for example, if there is little or no new supply, no absorbtion can take place.

While a small investor would have to use a P&L for his business the govt uses no such measure.

You not only have to be able to find deals, but you have to be able to accurately measure the rehab costs and then be able to market the property.

Of course, new pres. and the fed stepping in with drastic measures may affect this.Stick with the safe and smart play and buy as much as you can to hold for 5-7 years, then cash out when everyone is buying.

By some measures, this could be good for rentals, however it also drives up the cost of SFH.  

Ive never measured my IRR, but thats going to give a much better overall picture of real total return.

To get the home office deduction, measure and log the exact SF of your office vs the rest of your home.

Measure the length of the outside walls.

In the case that you do purchase a tax lien or deed are there any measures that can be taken to protect your investment (preservation improvements ect).

But you have to pay someone to do the measuring and draw the picture.