Even if we have hit peak pricing in the region, this could feasibly sustain for 2-3 years in the high-demand parts of Marin and the East Bay in addition to the northern Peninsula near San Francisco.

Determine where and what kind of property will generate a sustained positive cash flow and is located in an area likely to appreciate over time.

I would also be interested in hearing more about your blog biz success, its sustainability, etc.  

(I'd disagree that Pethworth prices has always sustained & will always go up--another neighborhood that I think is overrated.)

Pro-tip #3: Make sure your market size is big enough (at least 200 targets) and that you can sustain a campaign for at least 4+ mailings.

I am able to sustain myself off my rental portfolio, and that is more than most can say.

Just be sure they are all people who are very familiar with investing and understand cash flow and what it takes to sustain the projected cash flow.

I agree that this is one of the strangest situations I have ever seen.I have tried to figure out what would motivate a bank to follow this predictable path not once but multiple times.Maybe it is just wishful thinking on the part of the lenders... as they all seem to still have their head in the sand regarding any sustainable recovery and home prices stablizing let alone increasing.

These two factors in your area, both today, last year, 2 years ago, etc will tell you if you have a strong, mediocre, or poor market to sustain holding long termThese items will help you understand your market and thus, mitigate much of the risk involved.

Newer and bigger will take you out to the suburbs and country/smaller towns outside of Austin, for more square footage.As Eric points out, you stand to gain some appreciation on the home you ultimately buy, since the Austin metro is well positioned for sustained growth over the next couple of years.