Also, if $100K is the "good neighborhood", then likely the $45K neighborhood is not all-out tenement ghetto, and has a strong risk-return dymanic, despite the relatively lessened aesthetic.Your question is one that I had pondered and experimented with, by trial and error, for the first few years of my investing career.

I've been pondering about it and putting together the plan of attack on this.

I'm of the belief that if you stew and ponder on any given subject long enough you usually end up coming up with a pretty good answer yourself. 

Step back and ponder that right now most real estate markets are at their peak. 

As i have more time because i'm not chasing deals really just managing i've become to ponder my company's business model more.

A different perspective to ponder.

I'll do it to anyone who will listen because this is what I see happening to our country and I'm very afraid for it's future: As you listen to the political speeches, platforms and promises of the 2008 presidential campaign, ponder the words of Alexander Fraser Tytler, a british lawyer and writer.

The voting official says "We need to see a picture ID of all americans for the protection of all americans" Homer says, "I don't have any ID, I'm a white guy in my 40s, who works at a factory and drinks beer" (or something like that) and the voter offical guy says "Okay, there ya go....pointing to the voter booth" Then Homer ponders his vote and votes for Romney and his screen changes with a voice telling him what his new taxes are, he objects and a big vacume pops out and sucks him up sending him to a sweat shop in China!

I pondered that myself where I live outside NYC.

@Mark Ferguson  like to throw some other ideas out for you to ponder.1. most folks that sell in high value areas for low value areas over time usually regret it. you got in at a good time.. 2. take your positive cash flow and target one property and pay it off in a year.. keep doing that until your CO is free and clear your cash flow goes way up then.I just look at all the property I owend in the SF bay area ..