A couple bought their home back in the 90's for x amount of dollars, well it is well over that price x today, so they have been advised that they could turn their residence into a vacation home(and conduct it as an investment) and rent it out for a set amount of time( of which I do not know) after that period has passed they can then use a 1031 exchange because that residence is now used as an "investment property"Obviously, I am no attorney or expert of any kind but I'd assume it was legal to do this as it is quite common here(shady, definitely) but it is what I have seen and am not saying I agree with it or presume to know the fine tuned details of what else transpires.

I've since spent that time selling off (almost) everything and travelling all over the US and basically reinvented myself as a loss expert.

There are lots of pros & cons either way - I'd suggest talking to a tax expert, at the very least.

What I can do post-closing is work with his lender to “cash out” which, in the end, would provide similar economics to conventional financing.Any thoughts on this process?

That is, for economic reasons.  

Is it more economical than removing old tub and replacing with new?

Soccer experts from England, Spain, Germany, Italy, France etc. wrote those things.I better not quote anything from Croatian newspapers :)

When looking through local demographic information and other local economic information what are the most important areas of interest you as investors are looking for?

Mistakes are certainly part of the learning curve, still it's nice to avoid them.I think the one thing I would tell myself would be to not skimp on due diligence: get bids when need be (especially while learning to budget accurately), get expert advice on questionable foundations, scope the sewer lines in older homes, check the utilities, etc.What one lesson would you tell your pre-investor self?

That's exactly the type of property that I'm interested in.I am by no means an expert, but I"m always happy to bounce ideas back and forth, or to give you a second pair of eyes on possible deals.