In 99% of the situations, the buyer has already viewed the property and accepted its condition before submitting an offer- they don't feel the need to run an inspector through for a 99 point checklist. 

It could also allow you to finance the property more easily, as you won't be dealing with the pre-repair value and condition issues that may make it more difficult to get financing.

What condition are the vacant units in?

So weighing the tax breaks of longer holds against the risks and opportunity costs, I believe Bruce's strategy makes less sense for me personally in my situation and my market, but works very well for him.This is what I love about RE, it is so nuanced and location specific that a guy like Bruce can do it 1 way, and be completely right for his situation and market, and another guy like me can do the opposite and also be right (I believe) for my situation and market ... different markets, different conditions, different strategies ... this may be confusing to newbies, but I think the value for others is not in the strategy to copy, but in understanding the thought process and rationale behind it ... then they can apply a similar thought process to their market and situation to custom fit a strategy for themselves.

DON'T make these types a partner for yourself, lest you subject yourself and your finances to great and terrible risk.5) Tax implications - understand the formation of the LLC in Tennessee(you said you are looking at Memphis), how business 'flow through' income works for partnerships in corporations, and also learn which types of income are subject to social security tax vs.  

(I.E. squatters, fires, and the demo costs if the city when the city requires you to remove it after say year 15 due to its dilapidated condition.)

Welcome to the vibrant BP community, where you will find like minded individuals committed to REI and also helping others succeed.Since you didn't mention a REI area of interest, I added links below to the most popular niches, from which you can select one or all.http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property)http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)Your time on this social media site will be well spent.You have taken the 1st step by announcing your readiness and commitment to embark on a REI career.Whether you pursue, wholesale, rehab & fIip or buy and hold it's up to you to decide.The bottom line is that you must take action to start.

Cap rates and property condition is a good place to start as well as the rent roll. 

Additionally, it's recommended that you bone up on the basics, so that when linked with a mentor locally, you will be ready to hit the ground running and be able to ask more intricate questions to rapidly build your REI career.http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property) http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)Your time on this social media site will be well spent.You have taken the 1st step by announcing your readiness and commitment to embark on a REI career.Whether you pursue, wholesale, rehab & fIip or buy and hold it's up to you to decide.The bottom line is that you must take action to start.

Depending on the size of your units, have you looked into ductless air conditioning?