We pooled our money and our first property was a 30 unit foreclosure in a depressed area, about 50% occupied.

I'm leaning toward the familiarity of residential cash flow properties, but am getting sucked in by all the different alternatives - from wholesaling to commercial property.I have a partner (and old friend) in the Detroit area who has a team of fix-it people who can refurbish properties, and given that partnership, Detroit's high yield, and depressed market, I plan to target that area first.

The saving grace was that even in this depressed area, it would rent for $1200/month all day long.So we have the kitchen table talk, and I lay out all of his options.

The economy is depressed in this small town.

Most states have minimum dollar amounts that can be secured by RE, that came out of the depression when people gave liens for groceries at markets to eat and lost the farms over a hundred bucks. $5,000 initial amount here and it applies to any lien like seconds.

On the other hand, if your area is still over run with REO's, or other properties that are in some way depressed, and listed, use an agent.Personally speaking we build new construction, as the area where we live is rebounding and prices are going up.

Is this Detroit or is the market seriously depressed?

My son lived in Grand Junction, several years ago, and when I looked at the real estate market it was very depressed.

Everyone states this equivalent to the Depression!

The houses from 1929 to 1940 are depression era houses and less desirable than Victorians, even though they are 'newer'.