Now if I went to somewhere like Merced, California, there are numerous foreclosures and a large drop in house values--totally different markets.

You earned nothing and have nothing to deduct.You might have had expenses (driving around, fees already paid and not recoverable) that can be deducted.The simple version of the rule is money actually spent on business activities might be something you can deduct.

Take active investors to lunch and pick their brain.Once you do this enough you will have a sense of direction.

They have some really interesting simple numeric calculations for getting an idea of the scope of a rehab and what it should cost.

Hill said McLeod told investigators that he "started out honestly but along the way began skimming the equity" from refinanced homes.McLeod, 31, of Gaithersburg, pleaded guilty to felony theft, embezzlement and prohibited activities while acting as a foreclosure consultant.

Also, I am looking more for active real estate investors in these areas.

These neighborhoods are typically more active for wholesaling/rehabbing than the upper middle class suberbia.

Good luck and look forward to having you as an active member of BP.

I'm less in touch with other peninsula towns and I'm really out of touch with the San Jose and San Francisco areas.I guess what all that says is that since I'm not active in my area, I only know my very immediate market by osmosis and have a small idea of some other local communities via the news.

Try:Evansville Area REI Club - 812-303-7571Not sure if it is still active, though.