Neighborhoods rise and fall in "class", and investing in areas that are gentrifying is a great idea IMO.

So buy as low as you can and don't wory if the house value goes down in the next few months, as long as you can keep it rented...if you believe in the cyclical nature of an economy, then you must also believe that house values will eventually appreciate, especially with the coming-soon-to-a-theater-near-you inflation.

The assumption is that in a few years, appreciation of the property and inflation would be greater than 3% per year, and we would sell.

I think lease option works best in a rising market but I could be wrong.

I've been told now that this crime is on the rise in our area.

I go into it deeper in another thread a long time ago: http://www.biggerpockets.com/forums/52/topics/25034-the-history-of-property-managementWhere I absolutely do agree with you on this is the rise of speculation.

In a few years, I believe hyper-inflation will "eat" your debt and that 30 years fix-rate mortgage will be paid off sooner than you think.

They both rise and fall by the cash flow.

I wouldn't think it's a good time, in general.Maybe, if your in an area that's growing and new residential contruction permits are on the rise, but in most parts of the country, I think there is a reason home builders are going out of business.Used to be you could build for less than buy.

They have been trying to get a cash out refi so they can get most the home equity line back. reason is the intrest is low, but can adjust up tp 9% and we know intrest rates will rise soon so they want to lock in on a 30yr so better cashflow. bank says the HOA is refusing to fill out the questions because its a liability. all they have to give is the financials, and answer 2 sheets of questions. this happened to the lady above me too and she couldnt cash out refi either. that is stupid. if they dont let people get loans how could they ever expect to fill the complex up with people who will pay the hoa fee?