Here are my observations:1) You have to get a bigger discount, whether you're wholesaling or not2) There appear to be fewer buyers to wholesale to now who have cash, so work harder at building a list of real players3) Private lenders are a little more wary of loaning on real estate, but you can just show them in more detail how you buy at big discounts and they understand.

As an objective observer, it could be interesting.

Jeff,Good observation here are some other comparisions byNaomi Wolf - The End of Americahttp://www.youtube.com/watch?

"To be frank, since the TARP money came in, they are still selling off (properties at auction), but they kind of took a step back." . . .Real Estate Disposition LLC (REDC), which claims to be the nation's largest real estate auction company, held 300 ballroom auctions in 2008 and sold nearly 33,000 foreclosed homes for $3.4 billion -- a seven-fold increase in sales volume and nearly triple the proceeds the company generated in 2007.Company CEO Jeffrey Frieden said he expects to "smash that record" this year as banks and lenders continue to amass a huge inventory of foreclosed homes and are more motivated than ever to sell their inventory. . . .Some observers fear that if the massive amount of debt the government is taking on to stimulate a recovery, inflation -- and higher interest rates -- are inevitable consequences.

#3 is probably the point that causes more people to get into trouble, IMO...and the commentary I have been observing really seams to be focused on #10 and #11 diversification and investing what you can afford.

But from my neighbors perspective (from my observations) it is like chinese water torture and he is just waiting for the next drop to come.

First observations:2.35 million for 72 units is $32,600+ per door which is not (in my opinion) a great deal unless it is an A class property.

Two big causes of moisture I have observed are tenants running humidifiers and not using exhaust fans when in the shower (make sure your bathroom has an exhaust fan).

Are you simply observing things from afar now, or have your aspirations to invest in real estate returned? 

In my observations, a lot of well off people in the area seem to use these investments for tax reductions and not cash flow investments, making the cash flow properties even harder to find as prices are inflated by that demand and they could care less about positive cash flow.If you can boost rents to 1% or more of the purchase price as @Rich O'Neill suggests, you'll find its probably much closer to a worthwhile investment.