If it looks like the bottom of a toilet after a bowel movement, wait another 6-12 months and evaluate again. 

When you push on the red circle, there is noticeable movement.

So, with taking all your initial investment out with refinancing, you could literally perpetuate this forever.

Entitlement is a self-perpetuating cycle and in the neighborhood I invest, a way of life.

@Jimmy Moncrief We actually targeted this place because we knew it had been listed for a very long time (more than a year and a half if I remember correctly) with no movement and we were just hoping the seller was ready to finally come down.

Even the best economists have a hard time predicting inflation and currency movements in the short term (less than five years)...something to think about.

Have y'all seen much movement in the area?

I take caution from the fact that an ever growing number of writer’s whom I respect, expect a big movement soon. http://www.caseyresearch.com/articles/the-next-financial-disaster-starts-here. 

Where I am, houses under $80k usually end up selling for around 80% of the list price - $20k is a lot of movement on a house that cheap.

I would be worried about too much movement and cracked grout lines.