He's just saying that counting on appreciation and cash flow doesn't always work out like you'd hoped but that principal pay down always results in equity except on the short-term in a depressed market where property values are dropping.And this is why Alina asked you what your goals are.

I don't see a scenario where the rents are going to be depressed in an area that needs more rental stock.Now, from my memory, real estate investments in California never really cash flowed, as compared to other parts of the country. 

Of course we're looking for that unicorn OZ that is not currently depressed and still has room for more economic expansion.

With houses some might buy in depressed areas and deal with lot's of crap to try and get a high teen yield.

It stipulates reasons for when a tenancy can be terminated or a renter evicted.Under the ordinance, a landlord can evict a tenant "for cause" if a tenant fails to pay rent within three days of receiving a written notice, violates a material term of the rental agreement or uses the dwelling unit for illegal purposes such as distributing a controlled substance or using, manufacturing or possessing weapons and ammunition.Landlords also can evict a tenant who make threats to commit a violent crime resulting in death or bodily injury, or who continue nuisance or disorderly behavior that destroys the peace, comfort or safety of the rental complex.

That area has a bit of a rougher school district so prices are more depressed there.

J Scott's recent interview on the BP podcast discussed the inevitable economic depression that is coming and the wisdom of preparing by both keeping borrowing low, but also, holding onto your cash for reserves. 

Short term = depressed rents, deferred maintenance, vacancies and violations.  

Typically you only find lease options in more depressed markets-  Given that Washington DC has a very strong real estate market wherein properties generally sell very quickly, Sellers do not resort to lease options... unless they offer that to tenants who are already in place and, therefore, not generally marketed. 

Before you call the cops, this is a metaphorical question to buying now or waiting for the market.I'm a small fish trying to understand when is the best time to buy, and as history has its economic depression (eg: '07-'08) I find myself wondering if I should save up all the money I have from a 9-5 job or start the buy-and-hold strategy?