Since I am in California, the single family homes would have to be purchased in much less prime areas, that are not nearly as desirable, to cash flow.

I'm not seeing any possible way to make this work without shorting the second nearly to zero, and the first by $30K plus.

Then end may be near, but of what?

I still own a couple of development lots near the University and will hold on to them for a bit since prices have dropped and costs have increased.I am also a fan of rentals, I currently have 3 that are performing well and I don't ever intend on letting them go.

The closing periods on short sales are going to be very short in the very near future.

When I use the Case-Schilling Index it leads me to believe that some markets like Phoenix and Las Vegas are near where the prices should be, therefore we should not expect to see a major price reductions in these areas.

Then, you're stuck with a house with a (nearly) $150K note that's only worth $125K.I assume you're really from LA, CA, not Alabama.

We moved to florida from western NC and bought a house while still trying to sell our old house in NC...Well, it isnt selling.We have been paying both mortgages for several months now, and are bleeding money every month.It is too expensive, we cannot afford to continue doing this.So, we are entertaining lease options.We got an offer of 900 month rent, with 3500 down on 18month term.Our mortgage is 1600 a month as we paid 240K for the house only a couple of years ago.So this will not nearly cover our monthly expenses.

But, since I don't think a depression will happen and our society is not about to break down, I am still buying properties not disposing of them and keeping my cash securely in banks and brokerages.Anyone chanting the end of our financial system is near while still holding an asset like real estate or stocks is just blowing smoke.

I believe that this current situation is temporary and real estate investing will be even a better opportuinty in the near future when the "dust" settles.