I (we) mostly originate our notes but I’ve purchased about a dozen existing notes from banks and other note holders during the last 12 years.  

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

I need a contractor for a 1915 downtown Hillsboro home I've been eyeing. 

I just had to take the delay and make sure it was fully complete before I released the last amount of money.

However, the property must generate a cash flow as a long-term rental.

The owner is the lowest in their eyes.

Identify your "why" behind investing in real estate first (cashflow to leverage yourself out of your career, equity build-up long term for retirement, lifestyle investments you can use personally, reducing tax exposure, etc).

It really comes down to comparing what you give up in tax deferral with what you could gain in real estate benefits, and deciding which mix lines up best with your long-term goals.

I am currently saving up for a down payment for my first property which I plan to turn into an investment property (either a Duplex or Single Family Home/Condo and get room mates)I currently work in the Commercial construction field as a Mechanical Project Manager so I have a eye for observing how the typical MEP related things are built and designed and why.Since I have approx. 10+ years in construction experience it makes sense for me to leverage my work experience/wisdom and try to invest in distressed properties and renovate them myself or hire out contractors to do so.I am also trying to study and get my real estate license and possibly look into learning how to become a home inspector as well. 

There's still lots to do and rightly so the capital should be last.