Because I'm not a smart guy, or a savvy investor, I don't know how much cap rate traditionally swings in a particular market, but even if it only goes from 6% to 9% (which my research says was the industry average in the early 2000s) my property value drops ~33%, and now I'm looking at being upside down in a loan I need to refinance (because I'm at the end of my term.)

RE is an industry that tends to reward those who stay liquid and wait for things to fall into their lap.

My background is professional sales and marketing, and I grew up in the home improvement/construction industry.

@Chris Wilson you can certainly buy a home with what the industry calls "gift funds".  

The day job I reference places me in the construction and heavy industrial world as the corporate safety manager for a mid sized company.  

A good ratio is for every 130 units 2 administrators and 2 maintenance staff (even if some are part time)-tech savy and up on industry info.

But it is not a rule in the industry as far as I am aware (I've been in the business 30+ yrs.), that a house over 50 yrs. old has to be depreciated.  

and its an industry you know in and out.regardless welcome to real estate..  

These are easy to separate out for tax treatment.  

The strategy is best described in Joel Greenblatt's fantastic book, and an outstanding practical guide and tool for executing it can be found over at the Magic Diligence website.You can do either (or both) of those using the "leverage" of Options, allowing for substantial upside potential compared to standard stock purchases, with dramatically reduced downside (if you want a no-hype education on Options, Erik Kobayashi-Solomon's book is great).Those with the patience and inclination can indeed use Option trading to make money in any market condition (Wikipedia founder Jimbo Wales, Amazon's Jeff Bezos, and "Black Swan" author Nassim Taleb all spent time -- and made lots and lots of money -- as options traders in their careers).For even more leverage, you could of course do any of the above (and much more) on margin (meaning your brokerage lends you money to do the investment), though that's not something I would ever do personally.Also, if you focus on holding stocks (or options) for at least a year, you benefit from favorable tax treatment of the profits.