Values hold up well in this area as do rents.Only problem is that crime is rising as mobile thugs cruise the streets looking for easy pickings.

I'll use 3% for appreciation, since property only appreciates at the rate of inflation (Case-Shiller data) and that's what inflation has ran recently.

Realistically, what you're saying is you're going to get a few percent of appreciation, based on inflation.

He's selling his company and general strategy, so there isn't much variety on the investing advice - but there is a lot of good information from various guests on the economy and finances in general.And I think his general investing strategy makes a lot of sense - basically, inflation is coming, so load yourself up on income producing property in a variety of good markets, financed to the max at long term fixed rates.

Conversely, in a growing area you might expect rents to increase, perhaps even exceeding inflation.

Sitting on cash is a losing effort as you are losing to inflation, just the same as others who invest in CD's.

Rising vacancies in office and retail is largely due to a lack of consumer spending, lay-offs and business downsizing.

If we were to rent and hold one of the units for 1-2 years and wait till the market rises a bit we could see a sizeable return.

As investors, we LOVE this, it means prices are starting to stabilize and even slightly rise in some markets.All the successful investors here on BP have lost out making offers on REO's.

Of course, my area did not experience the price inflation that the bubble introduced into the market where you're now looking to buy, so the values won't be dropping as much near me.