Leverage your money, especially with favorable lender terms, and use the rest to invest in further units/properties.

She sued me for 10K, (much more than what I said, but you get the point, and there was no wine rack when I moved in) The judge found in my favor everything was under normal wear and tear and the fact that she didn't send me an accounting of my deposit. 

Occupancy fraud occurs when a borrower claims that the home will be owner-occupied to obtain favorable bank status when the property will actually remain vacant.  

There was a favorable inspection, appraisal contingency, and an agreeable closing date.

I assume it's a split heavily in favor of the person putting in the money, but then what motivates the other partner to do a good job?

(think this one over very carefully -- if you think ordering people around is "supervising" or "managing" a job, do everyone a favor -plan on swinging the hammer yourself).Do you have the time, money, patience and skills to either do the job yourself or deal with a contractor? 

I'm not in favor of investing in properties that have negative CF...that's not the same thing. 

Other reasons beyond the appreciation that you mentioned is because if you are getting a mortgage, interest will be more favorable to a primary home.

When can we expect the market to favor the buyers?

I know some of you will probably tell me to offer on both properties, but....which one would you favor?