The market is softening a bit and there are some great deals to be had.

Downfalls: Must know your numbers on the asset, trust the investor, and have multiple exits if/when the market softens. 

Some contractors may help you draft that.Don't forget exterior improvements to soften it so it doesn't look like a converted motel.Let's say you do that and the average bid is $200k.

I hear household debt/income ratios are at highest level ever and higher than the US – still no softening.

In the last slowdown, places like Antioch and Brentwood were hit super hard and it was just a softening on the Peninsula. 

You have to ask yourself if economics of buying a house vs renting for few more years until the housing market softens make sense.

Are you sure someone didn't unplug the water softener?

Rents went down this year. Vacancy is up. New supply is coming on the market and there is less competition. Interest rates have risen slowly but surely.Most of the indicators of at least a small correction are there. ...

I recently sold a property (in an excellent location) because the market there was extremely hot, rentals were softening due to apartment construction, and there was lots of cap ex looming. 

I will definitely be holding long, and using equity to buy when the market softens.