1. Tax considerations. Tax shelter is not as important as it was in the 1980's but commercial properties can still provide moderate tax shelter.
2. Exchange issues. If you're in a 1031 exchange and bumping up against your identification/closing deadlines, often purchasing a zero-cash flow property is better than paying the capital gains tax on your downleg property.
3. In Texas, mineral rights, specifically oil and gas
4. Future development, especially if you have inside information that's not generally available.
May 10, 2011