Early in the declining market, owner occupants sell just to get out without losing too much, and investor buys to hold as a rental since it will cash flow positive.

There are many local markets that have not seen a decline in values but yet still keep trudging along at the same equity growth as before the "mess".

Additionally, is the town where this duplex is located improving or declining in terms of rents and vacancies?

Once inventories get back to 18-20k homes, pricing will return to a declining trend till the distressed inventory is worked through.

It would appear that there is a correlation between the economic affects of the QE programs and the young, declining population in Japan.  

Yesterday I attended a brief "Nick Vertucci" seminar (supposed to be five hours, but the guy quit after about two), but declined the offer to spend $1800....what I'm really looking for is someone to help me along the route of the first investor "wholesale" or Rehab house; the current candidates appear to be interested only in the tuition fees, instead of a system people can plug into and at least get to first base with property identification, finances, fix and resale.

I personally have some concerns that the auto industry will continue to decline and diversification won't happen fast enough, so it might be a bumpy ride ahead but I'm still positive about the city.

If you compare long term charts of interest rates and house prices you will find that there is not much of a correlation between the two.Some believe higher rates will push down affordability and lead to price declines, others believe raising rates will get potential "first time home buyers" to finally make the move.  

@Marcia Maynard yes i did extend the offer of taking her voucher for section 8 but she declined.

BP Smartmoves recommends to decline this tenant, but on their payment history, they've literally never missed one payment.