The fact that they did at all was a hybrid of having done substantial remodels and buying at the market low in 2010.

And this probably sounds silly, but recently I got the illustrious and romantic idea to purchase a 4-plex using FHA financing in San Diego (read: expensive and won't cash flow, but vacancies would be low [very desirable city], and although prices have increased substantially in the past few years, I have to think there's still some room to grow, especially if I'm in it for the long-haul, though I know that multis don't appreciate as much as singles).  

It will be the knowledge and expertise shared in his letters to shareholders - much as Ben Graham left The Intelligent Investor and Security Analysis (both of which, directly or indirectly, have influenced everyone in the world if real estate).I think this is why there are so many in real estate willing to share despite the scarcity mindset of others.

I just can't see how demolition won't be substantially cheaper than all that, but if it's a better decision long term to spend the money, that's what I'll do.

I could also just pull the cash and leave what I have to for the feds, It will be a substantial amount, but I would have total control of what ever is left over. 

Age has very little influence when you have taken the time to become a powerful resource of knowledge.

The added cash flow is substantially less than the $24,000 you spent...unless somehow you are going to increase your cash flow by $24,000 total over the next could of years.  

Try not to tie-in substantial lessee improvements with the option exercise. 5.

But its also not an arrangement you make with a typical borrower its an arrangement you make with very close knit associates that want access to substantial capital..

I'd say that local market conditions would influence this a lot.