Even if there is another shift in demand, the top of the market will be filled first (if price points are adjusted).  

BTW if your adjusted gross income was below $100K for any of the past six years.  

It just depends on what the buy price is relative to market value and how long it would take you to find an identical property like that.No legal advice given. 

My job is in Oakland and I hope to stick with it a while but if prices don't adjust in the next few years, we will be forced to move out of state or to the valley with a 2 hour commute.My personal prediction: A major readjustment/ mild bubble burst not as severe as 2008 by 2019.

Below are the assumptions of the study:-Initial investment in all 3 scenarios is the same ($25,950 which is my total investment for my first property-Market investment return is 8% annually (I got this number from a financial planner)-Property appreciation was ignored, income and expenses remain the same, and all income from rental property is saved w/ no interest (so VERY conservative)-End date is 2056 (so 43 years) Scenario #1: Market Investment - Initial investment in 2014, no additional contributions are madeScenario #2 -One Investment Property - I just buy one property, save all rental income in a savings account with 0% interestScenario #3 - 10 Investment Properties - First property cash flows $14,129.40 per year, every 2 years cash flow from property 1 is used to purchase another identical property (same purchase price, cashflow, etc.), this is repeated every 2 years until 10 properties are aqcuiredResults:Scenario #1 ending value - $710,164Scenario #2 ending value - $920,444.04 (savings + equity)Scenario #3 ending value - $6,427,168 (savings + equity)These values were quite shocking to me and the people I have shown it too!

If it is on an MLS,  the Realtor may be able to contact the MLS office to make an adjustment. 

Eventually, they will overbuild and some will be left holding the bag and the entire market will adjust, but that hasn't happened...yet.

Loan gets adjusted every 5 years and will not be raised over 2%.

File Affidavit of Small estate.Give Sister Promissory Note for amount and terms that account for credit adjustments due to condition, normal costs if sold thru broker, and monthly oayments that still allow strong positive cash flow, even after paying ongoing maintenance expenses.Don't complicate it.

Essentially, the withdrawal is added to your Adjusted Gross Income for all tax purposes.If I were you, I'd go ahead and pull the $10,000 maximum out to put down on your first house.