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.

Although Tucson is rebounding, it is not quite up to national standards.

I agree, after doing more research I think I would pursue a rental property that I can get in at a good price sometime in the next year if something comes along, or wait for the market to swing back to more of a buyers market- i'd like something i can rehab slightly and then rent it out... hold it for a while and evaluate / decide if it's something I'd keep for longer term or sell when prices rebound. 

Once that happens - you'll really be in the money (and have a great sense of fulfillment).So, if your area is on the rebound, be a Catalytic Landlord!

I just found Charlston SC and will be building new co. there really nice margins in new co in that city.. so all in all having a great rebound to what was for me a nucular bomb in 08 to 2011...

I have friends living in and around Pittsburgh, and I'm also impressed/grateful with how much the city has been rebounding as of late.

I hear Cherokee street is a rebounding area as well with some potential.  

I dont think you get it hahaha... if you buy in november , it's at bottom, if you buy in fjunary/ebruary and try to sell in may/june that's where most flippers losing money .... now in january market already rebound and good time to buy for flips.

The US economy may be screwed temporarily, but apparently international investors are smelling a rebound coming.

But do you think that market will rebound?