Finding deals that can comfortably cash flow are difficult with little appreciation that can be expected in the near term (nearing the end of the cycle).It's a healthy market, but the dominoes will collapse in SF and run down south to LA and SD, just the nature of California.

I'm specifically referring to the end of the movie where the text was saying that major banks started selling these certain type of Mortgage Debts (forgot exactly the fancy term they had for them) again like they did in the mid 2000s when people were betting on the housing market to collapse..

People that think we are going to collapse like that again I think are simply armchair economists and fear mongers.  

I am looking for:  C- / C neighborhoods that are up-and comingUnder median price rangeSigns that other investors are there (bandit signs, one rebuild on the block) but aren't completely invested outHouses that have lots of equity (last sold more than 10 years ago)Abandoned housesHouses that look in need of serious repairOvergrowthSagging roofs and guttersWindow units instead of HVACRusting / collapsing chainlink fencesAging cars parked in the yardFaded numbers on mailboxChipped paint and non-traditional paint colorsSigns that seem to show anti-social behavior, such as "Beware of Dog," "Private Property," "No Trespassing," "CCTV Monitoring" (seems to correlate, don't know exactly why)Am I going about this right?  

During the 2008 market collapse, I had this opportunity and elected to ignore it.

When a “thermal” collapses, the warm updraft can quickly turn into a strong down draft.

Such proposals had been made by Governor Romney throughout the 1960s, but opposition did not collapse until after the riot.[29]1970s and 1980s[edit]The 1970 census showed that whites still made up a majority of Detroit's population.

If you're leveraged too far without cash reserves chasing one too many deals can cause the entire thing to collapse completely destroying the wealth you're trying to create long term.  

If I have a property that is practically about to collapse, what is the best strategy when it is time to begin rehabbing?

Ecuador, buyer purchased our lot in installment payments, oil crisis collapsed Ecuador economy, his construction biz went south then a massive earthquake recently leveled the town near our land.