The market has actually bounced back nicely there for those that could get off the fence and partake in the incredible buys that were there. 

Being new means there is a place for a mentor or coach these can be very good relationships and they can lead new folks into trouble, being taken advantage of and eventually running them out of the business.

This may be legitimate or may be trouble In other words, study the psychology of the situation as closely if not more so than the numbers :)That's simply just not true that no one sells positive cash flow.

<g> So why should I knowingly set myself up for more trouble rather than less by using cheap materials?

One of the two is an importer, and can get granite in pre-cut and polished 8' lengths for $11 and $12 per foot, and of course virtually any product where the savings are significant.The issue was that they were having trouble:1.

It won't cost you a thing and can possibly keep you out of trouble.

While these large purchasers might make it more difficult to find deals, overall, they bring the values up, helping under water homeowners get out of trouble and making for a more healthy market.

And there are lots of people who make a lot of $ & still have financial troubles.

Do you find you have trouble screening for reliable renters in the L/A area?

I am positive David already knows this, so I am just pointing this out for others, but I would change this line above to state that you should borrow for as long as you can and as much as you can WITHOUT overleveraging which can get you into trouble.