Otherwise, housing inventory is often too low and sellers' asking prices are too high in rebounding markets, creating thin (risky) margins for the investor. 

If you feel the area will rebound, then it could present a buying opportunity.

Most of Arizona has rebounded but my town has not due in part to drawdowns on the base and many commercial stores have closed.

Now that prices have rebounded, people with equity positions are selling.

Cleveland, Ohio.City is rebounding. 

My credit score should rebound next month.

Or sellers are listing the properties with agents because the market is starting to rebound..

Price point: $70-100KCAP: 9.0%+Rent/Price: 1.3+Cash on Cash Return: 15%+I am really interested in Dallas and Houston because of strong macro-economic fundamentals like job and population growth, but have heard that both markets 'are farther along the recovery cycle and that means home prices have rebounded to a point where cap rates are suppressed.'  

Ive had a good score, had time to mess it up with a medical bill and have almost rebounded.

I've been convinced for years that this is the best conventional loan product on the market, and yours is tied up with a property that doesn't cash flow in a market that hasn't rebounded (during a time, by the by, when prices are going crazy in a lot of areas, so much so that many markets it's tricky to even find a deal).2) Really more of a continuation of #1, I suppose, but the equity paydown isn't terribly useful when you're still underwater.