As a Virginia native I have turned my attention towards Richmond, VA as I love the city and started doing my RE research.

@Andrew Jones I'm sure most investors would react to your post title with, "Never over pay!"  

I just feel that if I don't react things are only going to get worse.

Watering isn't an issue; these were all older plants; native; well-established; never-been watered.

Two, am I over reacting?  

I'm not a NY native (though I have been here for ~17 years) so I don't know the surrounding areas as well.I'm looking for areas with aging housing inventory (i.e. lots of fixer-uppers) that has shown good resale value for renovated properties.  

I have found that Keller Williams has suburb brokers and agents.Use acronyms an expect them to know what you're talking about.Start talking in terms of GSI, ROI, CapRate and GRM and see how the agent reacts;what Cap Rate  is normal locally and is the GSI hi or low?

I am a native of this area, and I hate the fact that I have to go to the City of New Orleans and renew my contractors license every year...

React as necessary.btw: we must vet/screen tenants uniformly, but that does not mean they all get the same terms of tenancy.

I am not sure if the rents react as fast as the real estate property prices drop.I am actually looking at both type of properties.