Similar to what has been observed in Seattle and San Francisco, property values in the core areas of Portland have plummeted.The question now is, how long will it take for the city to recover?

Just a further observation, if you were to cash out the 401k's you're going to pay your current tax bracket as well as the penalties.

As everyone is aware we are currently in a sellers market with 2-3 times more buyers than sellers (just my observation, not based on stats), short days one market (often under 7), almost no expireds - why would a seller take 20% less than FMV?

In my observation, investors are not selling properties in Sioux Falls right now, unless they are undesirable.

I attended a Sheriff Sale in Montgomery County, PA the other day just to observe.

The most casual of observers can check zillow and see that the medium home price in Honolulu in July of 2006 was 566k, and the market was down from there until it came back to that price in july of 2013.  

Still, I'm trying to observe what the market is doing.  

Martin Your next steps sound exciting.I always enjoy it when we are finding a new advantage to pursue.Even when the new advantage is tiny or immaterial it is fun and smile worthy.The models I observed in Spain seemed to benefit greatly from multiple listings in a single building, as you are planning.I've been impressed by what will rent. 

. :) So just take it as an observation from a noobie.

I would not be surprised if it continues to climb for a couple more years then settled down to 2013/2014 levels.The rental market has always been very stable here, even through the housing crisis so I feel that if I buy an investment property now, even if the price is inflated, the rental income will be a good hedge against the coming correction.Now I'm certainly no RE pro, far from it, so these are just my observations based on living here for 30+ years, so take it with a grain of salt.