Also, fire might not be likely certainly not for more than one house but if the houses are concentrated in one area they could easily all be hit by a hurricane or major rains that ruin a few basements etc.

I've used this approach in most cities I've lived in and have had interest in investing in (cash flow) and found that you can usually map concentric delineation of affordability.

So, if I ignored the "living in" number and concentrate on the rented out numbers, this should be considered a decent deal?

You can spray all of the mold with concentrated hydrogen peroxide (mix sodium percarbonate with water)4.

. - why concentrate on REO's?

You still concentrating on the San Jose market or are you starting to venture out to areas like the East Bay?

I am concentrating on holding on while trying to pick up the deals. 

., you won't experience rent controls and attempts by the government to regulate rent in certain areas due to the housing affordability crises experienced in those areas.Despite the US claiming to be a free market for instance, some mergers of companies in the market place often have to pass regulatory approval -- to prevent excessive concentration of market power in the hands of a few firms that can result in predatory activities that can prevail in such an environment.

There's also a super high concentration of well-educated and/or entrepreneurial people who know how to build wealth through all those various ways that you mentioned. 

.), but if can't imagine that ANYONE had ANYtHING positive to say about it:) He is changing the world (literally) as we speak..The 40 hours that you have "freed up" to concentrate on something you are passionate about FAR supercedes the stability that others have stated on this thread.