However, the potential for long term growth and the rents to purchase price ratio seems much better than the Bay Area (and much less risky than being a economically depressed place like Stockton where prices are much cheaper).Anyone have any experience or thoughts about these areas of Sacramento?

I have relatives living in that area, it's very depressed.

If the market follows the pattern established during the great depression (it could be much worse), then the DOW should get down to at least 1,540.

traditional stocks have paid 10% since the depression. you could put it in a roth ira, buy a total stock index fund from vanguard & keep it there until retirement & cause yourself a lot less hassle.but if you're gambling on appreciaton, with the leverage, then you can outdo those returns. at 3% appreciaton, you could get 20% return.

I am reading a book on hyperinflation and depression right now.

They are doing this using powers granted the FED during the Depression in the 1930s.Why didn't they do it last week before the pork filled bailout was crammed down our throats?

Secondly in Indianapolis new rules are in effect for rental property owners and new crack downs are coming for out of state investors who buy crap and hold on to it with no care or up keep further depressing areas.

What you are seeing is not depressed U.S.A. housing prices in so much as unsustainable Canadian housing valuations w/r to household income.

-deanNo you're not bitter, you are completely accurate about these areas, I sent you a pm regarding this topic, but it's sad these people can't rise out of their depression is what I like to call it and see the light.Everyone in life deserves a fair chance at happiness.Yeap, hit the nail on the head..

If market is depressed and has huge price gaps, rule out low priced distressed comps.Estimate rehab including holding costs from lender (if applicable).Determine grade of neighborhood (A+ through C-).