Whole deal crashed because now we have to wait 60 days for them to be out according to CA law since they were month to month.

Granted if the market crashed tomorrow that would be trickier.

@Vincent Serpico, It's not just about the sheer size of a crash, although 40% is a heckuva crash. 

you can sell and no lose too much money, and look for a good investment, since it sounds like you paid too much relative to rental income  (mine is the same, but it was not bought as an investment, just my last house in a market that crashed so I couldn't sell without pain)

I am going with HELOCs because I'm trying to expand my buying potential for if/when another crash comes. 

@Brian Simpson - We're considering a property for much the same purpose, a crash pad for military members on TDY, if you will.

But then because of the crash,  the sheriff's office  was running way behind.  7 weeks instead of normal 2.   

I didnt own any rentals back in 08 when the market crashed so i have no idea.

You can then ride both the gains from the stock market AND have the upside of having substantial RE portfolio.The one issue with this is the bank can 'call' the loan at the worst time -- during times of financial distress, stock market crashes, credit line freezes, etc.

I have worked in lending as well as debt restructuring since 2005, originally starting in the Mortgage industry before the crash.