It’s been rented out since Oct 05.I learned a lot and feel I could have negotiated lower prices but they are renting for a positive.

You can either go short the home builders like Toll Brothers or St Joe or you can short a Real Estate Investment Trust (REIT) or ETF.Going short is highly risky and with REITs or ETFs, you may also be stuck with paying high dividends is you hold your short position for a long time.

They will not buy second position notes.ATTENTION!!

Concidering your in Ca, how are you able to purchase a rental property with positive cashflow?

If you don't have that program and have studied and applied it, then you're absolutely positively most definitely not a serious real estate investor.

In any case, I've been debating doing a condo conversion and selling it in halves, or holding it for a few more years.The positives of selling it now that I see are:-I would have more cash available for making other investments.

There is nowhere that you can purchase any investment properties that is going to turn a positive cash flow.

Now since the market here in LA, CA is through the roof and impossible to provide any positive cash flow, I decided to look elsewhere in the country.

Here are the reasons: legal positions.Don't ask me for details because I don't know them, but I can tell you that combining the lease-option contract (filing it with the courthouse as well) solidifies your interest in the property as opposed to seperating the two which will weaken your legal position in court in the event that your optioner is crooked and has all types of liens and such on the deed that he did not disclose with you.

The key to overcoming fear is to feel good about yourself and think positively.