There's a scarcity factor in decent areas, and cash flow is generally poor, from what I've found.I'd advise that you be cautious and not t let the FHA financing tempt you into purchasing where the numbers don't work.

Flipping, wholesaling and other RE investments use different sets of guidelines.I don't mind investing out of your area, but I would be cautious about low income housing.

He told me it is going to be a disaster beyond anything he has every seen by the time everything stops.I am not certain one way or the other but his words reverberate through my brain daily, especially when I read posts like yours.Clearly in CA - LA and OC have a long way down to still drop - I would be cautious making anything but short term investments in those markets.

But I would be cautious in this scenario.

Non performing notes combined with declining collateral values is a recipe for a challenge, so any fund should be cautious with the degree of leverage utilized in the mortgage fund.

Just be very cautious of your cash flow - you definitely want it to be positive as a buffer against the unexpected.

Be very cautious as a real estate speculator.

Let’s just say this expansion has lasted longer than any other in history, so there is reason to be cautious.

And what do I need to be cautious for when buying these types to properties?

Anyway, I plan to start cautiously, get a property or two under my belt and continue learning as I go.