My go forward strategy is take these homes that are in good condition, maybe even lightly renovate them and turn them into standard rentals, on the older ones there still may be resale or scrap value I'll take that on a case by case basis and then begin to Vet incoming tenants and establish a "housing code" so to speak going forward on appearance...this will be a multi year strategy as I can't just kick the old homes out and find great new tenants over night but I'm confident over 5 years I will greatly improve the appearance and there for the rent value

Truly hope you can avoid stubbing your toes with your attempt to eat the elephant in one bite.Your right, I don't know you and I still learn things every day. 

Every day I seem to flip-flop depending on what I read.I mean the way I'm looking at it, I can get a small duplex/triplex here that looks pretty beat-up with low cap rates of 3%.  

That said, housing still looks more affordable on a relative basis compared to the peak of the last cycle, mortgage underwriting is much more grounded than it was.  

You didn't pay to add the pool so you can't really lump the whole thing in to your basis at a segregated value without knowing that value . 

And, of course, it's unlawful to discriminate on the basis of marital status anyways. 

If you bought the home in your own name, you could still deduct your mortgage insurance and get a free stepped up basis when you sell it. 

There is likely more equity though so ideally I would like the cost basis to reflect the full value.Pete M.

A major upshot of the Fair Housing Act is to prevent real estate professionals from steering buyers toward or away from certain areas or neighborhoods on the basis of such factors. 

In this case, losses would be spread out on a pro rata basis of ownership percentages.