He said there may be a way to spread it out to get this lowered to around 7K.2) My realtor said there shouldn't be any capital gains taxes as I paid 133 and sell for 180 ; take out closing costs, realtor fees and all home repairs would drop this way down but shouldn't be any CAPITAL gains taxes at all.3) Then I have also read online another viewpoint: That I take sale price of 180 minus the 133 originally paid=47K I spread that out over 17 years= $2,760/yr.

This is not a concern because in CA HOA liens are dropped as part of the auction process, right?

If we continue this trend the big numbers start to fall off and get replaced by smaller numbers we could be in the 2%-3% range 6-7 months from now.The biggest item, that I think could lead to CPI specifically dropping even faster is the way the CPI report calculates shelter costs.  8% of CPI is based on an actual rent survey, but its y/y changes not m/o, so even as rents are dropping in real time it will take another 3, 6, 9 months for rent numbers to come down on CPI. 

It went from no criminal or eviction history to several records on the criminal report and 1 eviction record, and the credit score dropped. 

I had to drop off but would like to join more in the future.

If you want to go hard in the paint and buy multiple properties after you have paid the current mortgage to 20% in order to drop the insurance, you definitely can but could add a lot of unneeded stress as well. 

In addition, prices are going to continue to drop therefore you could probably buy a few properties with better cash flow.

Of course, if the market drops 10%, my net worth will drop that amount in the other direction.

Some of the bigger markets you may see a drop as they have a better shot to replace with full-time nurses

Price drops of purchases are lagging right now - the best thing to do IMO to deal with this is to not be afraid to make a lot of "lowball" offers - chances are one out of X will be accepted, just only offer on properties what would cash flow for you