Supply needs to decrease and demand needs to either stay the same or increase.

Lending will ease, though it may take a while.As a buyer, I worry that the number of REOs available will decrease and their prices will increase, since the banks now have an alternative buyer for their bad loans.As an individual investor, I'm concerned that large companies will end up being the ones to get the properties from the fed entity that's yet to be created.

I just moved to Vegas not long ago, and hear that the housing market is continuing to decrease.

Here are some of Rich's posts on income tax reduction:http://www.biggerpockets.com/forums/51/topics/36477-if-you-don-t-get-all-warm-and-fuzzy-when-you-pay-income-taxes-http://www.biggerpockets.com/blogs/575/blog_posts/2452-decrease-your-income-taxes-with-these-hintshttp://www.biggerpockets.com/forums/51/topics/37738-4th-obstacle-to-creating-real-wealth

isn't it safe to assume while putting deals together for buy and hold that rents will decrease from current highs.

Another thing I find interesting that seems to be missed here....When Joe the Plumber's taxes are increased - who do you think is going to see decreased profit in his "flipping" business when rehab costs increase?

Maybe 10% to 25% more.If you can lock in a "strike price" of 20% less than comps today, 36 months lease, by the time you exercise, I believe you should not be risking much, especially if you can receive a rent credit to further decrease your strike price.Short leases are not a good idea right now with exercise of option sales prices based on current market comps.I hope that helps,Brian

Originally posted by K Smith:Jon, Looks like she and her husband took out a loan for whatever reason and he died and she found herself in a economy where the value of her home was sharply decreasing in value.

The bonus that I found a few years back is when the rental industy was a bit sluggish, due to large amounts of first home buyers leaving their rentals to purchase thier first home, I did not have a giant decrease in rental applicants.

Make certain that whatever income you derive covers your costs of owning the property, plus a profit.Check to see whether the value of other area properties have increased or decreased in the past five years.