Now he is even willing to p/up my trash (sheet rock, insulation, busted tile, busted cabinets) on even small reno projects for free or at a very low cost.

It had rotted siding, windows, trim, wood framing, etc throughout, overgrown trees, roots, outside slab cracks, outdated and worn out kitchens / bathrooms, floors throughout, rodents in the attic with torn insulation as well as torn HVAC conduits, leaking sky lights, etc, etc, etc.

Property is in need of some repair including a visible water leak (I suspect from a balcony not sealed correctly) through the kitchen ceiling, new furnace and A/C, wall repairs, insulation, and other cosmetic repairs.My mortgage broker told me I have no chance of a bank lending on a conventional mortgage with major issues like visible water leaks.

Why, because they get lose, can't be found easily, get in ceiling light fixtures, chew on wire, tear up insulation, get in drains and scare the stuff out of the cable guy in a dark crawl space.

Additionally, if you want a better energy rating, insulation is cheap, do it yourself!

Illiquid assets like real estate (or even insurance) at least help to insulate the average investor against this self-defeating behavior.There are long-term trends in asset classes that make them relatively cheap or expensive at any given time, in a historical context.

In our mainly service oriented economy, jobs and wages have been fairly insulated from the downturn and the sellers market, while loosing some ground, still persists.An example is Seascape Subdivision in South Anchorage.

The one where the trusses are exposed most resembles mine because the firemen took out the sheetrock and insulation.

And don't forget the typical stuff that's overlooked and relatively expensive in older houses -- GFCI and grounded outlet updates, attic insulation, outdated tile, etc.

It was hard to regulated the temp in the other rooms (even though it was a newish place and insulated etc).