If this happens, bets on appreciation will be losers with the bettors suddenly finding themselves underwater on a property that is losing money every month. 

It's for bettors, not investors, in my mind.If you are a long-term buy and hold investor, then you want to be looking for stable markets with strong underlying fundamentals of population growth and job growth, and you want to be looking for strong cash flow with a built-in margin of safety for when the economy inevitably turns down and your vacancy goes up, so that you can still meet your debt service and not get foreclosed on.So many new investors see other people making money in a hot market and want to jump in too.  

Hello Experts,I read alot and tried to get into foreclosures(in my area in Iowa) but found that alot of time/work/money/risk involved for a little or sometime may be descent money (if you are lucky or can sell it on the prices you expected initially) ... but I am not sure all this work is worth for what you are getting..I am in in a process of planning future and deciding the best route for investment option, basic goal is to get a regular monthly return/income while i can keep working on my current full time job, i can invest in either buying a multifamily/apartment building having 25+ units or buy a hotel/motel or buy a land and construct a apartment building(not sure if constructing a building would be bettor of buy an existing one).My target area would be 1.

My primary goal though is lowering my expenses for my portfolio while providing bettor service  (more responsive/dedicated maintenance and snow removal done well and in a timely manner).  

The reason I use "investments" in quotes is because, as you indicated, Kelly Criterion is typically used by gamblers who have the opportunity to make positive-expectation bets -- most commonly sports bettors and skilled blackjack players.I actually played professional blackjack for a couple years in college, and Kelly was the basis of my overall betting strategy.

I am an avid sports bettor so handicapping is natural to me. 

You may be a good bettor.  

Because it is not my own experience, I cannot say anything else on this.)My decision was ruled purely by two mathematical considerations:1 - Not being a bettor on market appreciation, I invest for cash flow.

You would be bettor off borrowing the funds from someone else that is not a prohibited party to your deal.

He ended up as one of the best sports bettors of all time, his return on each game bet was >10% for a solid few year window.